Reliance Industries and Disney Complete Merger; Nita Ambani to Lead New Joint Venture

November 15 :
Reliance Industries Limited (RIL), along with Viacom18 and Walt Disney, has officially concluded the merger, establishing a new joint venture (JV) that integrates Viacom18’s media operations and JioCinema with Star India Private Limited. This strategic move marks a major development in India’s media and entertainment sector.

RIL has made a significant investment of Rs 11,500 crore into the JV to help fuel its expansion. The combined value of the JV is pegged at Rs 70,352 crore, not accounting for synergies. The post-merger ownership structure places RIL with a 16.34% stake, Viacom18 with 46.82%, and Disney with 36.84%. Nita M. Ambani will serve as the Chairperson of the JV, while Uday Shankar will act as Vice Chairperson, providing leadership and strategic oversight.

The newly formed JV is expected to become one of India’s largest media and entertainment companies, with anticipated annual revenues of approximately Rs 26,000 crore for the fiscal year ending March 2024. The venture will operate over 100 TV channels, produce more than 30,000 hours of content annually, and manage digital platforms like JioCinema and Hotstar, which collectively have a subscriber base of over 50 million. Additionally, the JV holds an extensive portfolio of sports broadcasting rights, covering cricket, football, and other sports.

The transaction was approved by the Competition Commission of India (CCI) on August 27, 2024, and has received clearances from global anti-trust regulators, including in the EU, China, South Korea, Turkey, and Ukraine.

In a separate deal, RIL has acquired Paramount Global’s 13.01% stake in Viacom18 for Rs 4,286 crore, increasing its stake in Viacom18 to 70.49%. The remaining shares are held by Network18 Media & Investments Ltd. (13.54%) and Bodhi Tree Systems (15.97%).