The Business Bytes
Mumbai, November 14, 2024 (TBB Bureau): In a transformative development for India’s media landscape, Reliance Industries Limited (RIL), led by billionaire Mukesh Ambani, has completed the merger of its media assets with the India business of The Walt Disney Company, creating a joint venture valued at over Rs 70,000 crore. This newly established media powerhouse is poised to become one of India’s largest entertainment companies, with an estimated revenue of Rs 26,000 crore.
According to a joint statement, Nita Ambani will serve as the chairperson of the new entity, with former Star and Disney India veteran Uday Shankar as vice-chairperson, steering the company with a combined vision and strategy. Following the merger of Viacom18’s media and JioCinema assets into Star India, shares have been allotted to Viacom18 and Reliance in exchange for the assets and capital investment. The transaction values the joint venture (JV) at Rs 70,352 crore (USD 8.5 billion) on a post-money basis, excluding projected synergies.
The ownership structure sees RIL holding a 16.34% stake, Viacom18 controlling 46.82%, and Disney holding the remaining 36.84%, with RIL controlling the joint venture. Additionally, Reliance recently acquired Paramount Global’s 13.01% stake in Viacom18 for Rs 4,286 crore, solidifying RIL’s majority share of 70.49% in Viacom18, with Network18 and Bodhi Tree Systems retaining stakes of 13.54% and 15.97%, respectively.
Leading the new entity are three key executives: Kevin Vaz will manage entertainment across platforms, Kiran Mani will helm digital operations, and Sanjog Gupta will spearhead the sports division. The JV boasts broadcasting rights for major events such as IPL, ICC, and BCCI cricket matches, as well as an extensive portfolio of sports rights across football and other sports. This leadership team, according to the companies, is set to “cultivate a bold, transformative vision that challenges the status quo and sets new standards in the industry.”
Commenting on this landmark venture, Mukesh Ambani, Chairman and Managing Director of RIL, said, “With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. Our deep creative expertise, relationship with Disney, and unmatched understanding of the Indian consumer will ensure unparalleled content choices at affordable prices for Indian viewers.”
Robert A. Iger, CEO of The Walt Disney Company, shared similar enthusiasm, stating, “By joining forces with Reliance, we can expand our presence in this critical media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services.”
With over 100 television channels and an annual production output of 30,000-plus hours of TV content, the JV will leverage two streaming platforms — JioCinema and Hotstar — boasting a combined subscription base of over 50 million. This scale positions the JV to compete with global OTT giants like Amazon, Netflix, and SonyLiv, offering extensive choices in entertainment and sports content across both TV and digital platforms.
The deal has received all necessary regulatory approvals, including clearances from India’s Competition Commission and international antitrust authorities across the EU, China, Turkey, South Korea, and Ukraine. According to the statement, “The formation of this JV will herald a new era in India’s entertainment industry, bringing together the content creation prowess of Reliance and Disney with world-class digital streaming capabilities to offer affordable, diverse content to Indian viewers and the Indian diaspora globally.”
