Nita Ambani to lead $8.5 Billion TV and streaming mega-merger between Reliance and Disney

The Mukesh Ambani-led RIL will infuse Rs 11,500 crore ($1.4 billion) in the merged entity, with the company and its affiliates collectively holding over 63% ownership stake, while Disney will retain the remaining share.

Reliance Industries Limited (RIL) subsidiary Viacom 18 and Star India, The Walt Disney Company’s (Disney) India unit, on Wednesday, announced the signing of binding definitive agreements to form a joint venture to create one of India’s largest TV and digital streaming platforms. Under the terms of the agreement, Viacom18’s media operations will be merged with Star India Pvt Ltd (SIPL) through a court-approved scheme of arrangement.

The joint venture, with a post-money valuation of Rs 70,352 crore ($8.5 billion), will see RIL injecting Rs 11,500 crore ($1.4 billion) to support its strategic growth initiatives. As per the terms, after the completion of the merger, the joint venture will be predominantly controlled by RIL, with ownership stakes of 16.34% by RIL, 46.82% by Viacom18, and 36.84% by Disney.

Nita Ambani will assume the role of Chairperson of the merged entity, while former Walt Disney executive Uday Shankar will join as Vice Chairperson.

In the press statement, both companies said that the joint venture aims to become a dominant force in television and digital streaming. With a combined viewership exceeding 750 million across India and the global Indian diaspora, the venture aims to leverage the media expertise and diverse content libraries of Viacom18 and Star India to provide a diverse range of domestic and international entertainment content, along with sports livestreaming services. This includes access to highly anticipated events across television and digital platforms via JioCinema and Hotstar, enhancing the overall entertainment experience for consumers.

The statement said that with a portfolio including iconic brands such as Colors, StarPlus, and StarSPorts, the venture will offer consumers an innovative and convenient digital entertainment experience at affordable prices. Furthermore, the joint venture will hold exclusive rights to distribute Disney films and productions in India, encompassing a license to over 30,000 Disney content assets, thereby enriching the entertainment options available to Indian consumers.

Star and Viacom18 are currently owned by Disney and Reliance, respectively, with Bodhi Tree Systems holding a roughly 16% stake in Viacom18.

Speaking about the JV, Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, said, “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance group.”

Bob Iger, CEO of The Walt Disney Company, said, “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create longterm value for the company. Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content.

Uday Shankar, Co-founder of Bodhi Tree Systems, said, “We are privileged to be enhancing our relationship with Reliance to now also include Disney, a global leader in media & entertainment. All of us are committed to delivering exceptional value to our audiences, advertisers, and partners. This joint venture is poised to shape the future of entertainment in India and accelerate the Hon’ble Prime Minister’s vision of making Digital India a global exemplar.”

The transaction is subject to regulatory, shareholder, and other customary approvals and is expected to be completed in the last quarter of Calendar Year 2024 or the first quarter of 2025, said the statement.