Reliance, Viacom18 and Disney form Rs 70,352 cr JV with merger completion

Reliance Industries, Viacom18 Media, and The Walt Disney Company have successfully completed a major media merger, following approvals from the National Company Law Tribunal (NCLT) Mumbai, the Competition Commission of India (CCI), and other global regulatory authorities.

The merger integrates Viacom18’s media assets and JioCinema with Star India Private Ltd (SIPL), creating a new joint venture (JV). Reliance Industries Ltd (RIL) has invested Rs11,500 crore to support the JV’s growth, receiving shares in return for its financial backing. The JV is valued at Rs 70,352 crore (post-money), excluding potential synergies.

Ownership of the JV is split as follows: 46.82% by Viacom18, 36.84% by Disney, and 16.34% by RIL. Nita Ambani will chair the JV, with Uday Shankar serving as vice-chairperson.

This new entity combines iconic brands such as Star, Colors, JioCinema, and Hotstar, offering a robust portfolio of TV and digital content across entertainment and sports. The JV operates over 100 TV channels, producing more than 30,000 hours of content annually, and has a combined digital subscription base exceeding 50 million.

With pro forma revenue of Rs 26,000 crore for FY 2024, the JV is positioned as one of India’s largest media companies, boasting extensive sports rights across cricket, football, and more.

The merger received CCI approval on August 27, 2024, subject to voluntary modifications, and clearance from regulatory authorities in the EU, China, Turkey, South Korea, and Ukraine.

Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries, described the joint venture as a game-changer, stating, “This JV marks the beginning of a transformational era for India's media and entertainment industry.”

He said, “The JV will be spearheaded by three CEOs who will lead the company into a new era of ambition and disruption. Kevin Vaz will head the entertainment organisation across platforms. Kiran Mani will take charge of the combined digital organisation. Sanjog Gupta will lead the combined sports organisation. 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.”

Robert A. Iger, Chief Executive Officer, The Walt Disney Company, said, “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. By joining forces with Reliance, we are able to expand our presence in this important media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services.”

In a separate transaction, Reliance Industries has completed the acquisition of Paramount Global’s entire 13.01% stake in Viacom18 for Rs 4,286 crore. This transaction further consolidates RIL's position within Viacom18, giving it a majority ownership of 70.49%. Network18 Media & Investments now holds a 13.54% stake, while Bodhi Tree Systems retains 15.97%, both on a fully diluted basis. This move strengthens RIL's influence in the media company, positioning it as a significant player in India's evolving media and entertainment landscape.