Reliance Industries Limited (RIL), Viacom18, and The Walt Disney Company have announced the successful formation of a joint venture (JV). The merger of Viacom18’s media and JioCinema businesses into Star India Private Limited (SIPL) has been approved by regulatory authorities, including the National Company Law Tribunal (NCLT) in Mumbai and the Competition Commission of India.
RIL has investment of Rs 11,500 crore (around US$ 1.4 billion) into the new JV. Following the completion of this merger, the JV is valued at an impressive Rs 70,352 crore (approximately US$ 8.5 billion), excluding potential synergies.
The ownership structure is split with RIL holding a 16.34 per cent stake, Viacom18 owning 46.82 per cent, and Disney holding 36.84 per cent.
Furthermore, Nita M. Ambani will be the Chairperson of the JV, with Uday Shankar as Vice Chairperson.
Mukesh D Ambani, Chairman & Managing Director of Reliance Industries Limited, said, “With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer will ensure unparalleled content choices at affordable prices for Indian viewers. I am very excited about the JV’s future and wish it all the success.”
Media Release - Reliance and Disney Announce Completion of Transaction to Form Joint Venture to Bring Together the Most Iconic and Engaging Entertainment Brands in India
— Reliance Industries Limited (@RIL_Updates) November 14, 2024
Joint Venture ready to lead the transformation of India’s digital streaming eco-system and grow the linear TV…
"The JV will be one of the largest Media & Entertainment companies in India with pro forma combined revenue of approximately ₹ 26,000 crore (~US$ 3.1 billion) for the fiscal year ended in March 2024. The JV operates over 100 TV channels and produces 30,000+ hours of TV entertainment content annually. The JioCinema and Hotstar digital platforms have an aggregate subscription base of over 50 million. The JV holds a portfolio of sports rights across cricket, football and other sports," added the company in the exchange filing.
As per the regulatory filing, the company added, "The Competition Commission of India (“CCI”) approved the transaction on 27 August 2024, subject to the compliance with certain voluntary modifications offered by the parties. Apart from the CCI, the transaction has been approved by anti-trust authorities in the EU, China, Turkey, South Korea and Ukraine"
“This is an exciting moment for our two companies, as well as for India’s consumers, as we create one of the top entertainment entities in the country through this joint venture,” said Mr. Robert A. Iger, Chief Executive Officer, The Walt Disney Company.
Uday Shankar, Co-Founder of Bodhi Tree Systems, said, “James and I are excited to be partners in this journey to disrupt the media and entertainment industry in India. The new organisation is committed to deliver an unprecedented level of creativity, disruption and new age consumer experience. As media consumption continues to move to an integrated TV-digital ecosystem, the merger of Viacom18 and Star India offers a unique opportunity to reorient the industry to better serve diverse cohorts of consumers across the country. Together, we aim to build India’s largest integrated media platform which will deliver unparalleled experiences in innovative and exciting ways.”