In a significant move, Reliance Industries, led by Mr. Mukesh Ambani, and Walt Disney have merged their media businesses in India, bringing an end to speculations. The deal, valued at $8.5 billion, will see Reliance’s Viacom18 and Disney’s Star India combine their digital streaming and television assets in India, as per the official press release.
Reliance Industries will hold 16.3% of the total value, Disney will have 36.8%, and Viacom18 will emerge as the majority shareholder with 46.8% in the joint venture.
Former Disney India chairman, Mr. Uday Shankar will assume the role of strategic advisor and vice chairman of the joint venture. Reliance will invest $1.4 billion in the Indian joint venture. Mrs. Nita Ambani will take on the role of chairman of the merged venture.
Mr. Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, hailed the Viacom18-Star India merger by stating,
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.
Furthermore, Bob Iger, the CEO of Walt Disney, expressed his thoughts on the merger, noting, “India is the world’s most populous market, and we are enthusiastic about the prospects this joint venture will offer in creating long-term value for the company.”
The merger will combine the streamable content offered on Disney platforms with access to over 100 TV channels. This significant merger has the potential to revolutionize the entertainment and media business and could potentially establish a monopoly in the Indian market.
The new venture aims to create high-quality content and make it accessible to people anytime, anywhere, at affordable prices. By combining their catalogs and technology, the combined entity plans to offer a wide range of movies, shows, and sports streaming services.
This collaboration is expected to enhance the overall content viewing experience in India while also making all forms of content, including TV (Colors, StarPlus, StarGOLD), streaming (Jio Cinema, Hotstar), and sports (Star Sports, Sports18), accessible to every corner of the country.
Combining Disney’s popular content, the aim is to provide an affordable and captivating digital entertainment experience for all. The merged entity is set to reach over 750 million viewers across India, as per the company’s projections.
The expected market cap growth from this merger is estimated to be nearly 40%, a substantial increase. The merger is anticipated to be finalized by either Q4 2024 or Q1 2025.
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