In a groundbreaking move set to reshape India’s entertainment industry, Mukesh Ambani-led Reliance Industries and global entertainment giant Walt Disney have inked binding definitive agreements to merge their streaming and TV assets in the country.
The joint venture, valued at a staggering Rs 70,352 crore ($8.5 billion) post-money, will see Reliance investing Rs 11,500 crore to fuel the venture’s growth trajectory. As part of the deal, Viacom18’s media operations will be integrated into Star India Pvt Ltd through a court-approved scheme of arrangement.
Upon completion of the merger, the joint venture will be controlled by Reliance and jointly owned by Viacom18 and Disney, with respective stakes of 46.82% and 36.84%. Nita Ambani will preside as the Chairperson of the venture, with Uday Shankar serving as Vice Chairperson, offering strategic direction to the enterprise.
Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, expressed enthusiasm about the collaboration, hailing it as a landmark agreement set to usher in a new era in India’s entertainment landscape. He emphasized the joint venture’s commitment to delivering unparalleled content at affordable prices to audiences nationwide, leveraging the extensive resources, creative prowess, and market insights of both entities.
The venture, slated for completion in the last quarter of 2024 or the first quarter of 2025, will grant exclusive distribution rights for Disney films and productions in India. Moreover, it will offer a comprehensive suite of entertainment options, boasting a licensing agreement covering over 30,000 Disney content assets.
Bob Iger, CEO of Walt Disney, lauded Reliance’s profound understanding of the Indian market and consumer preferences, envisioning the joint venture as a cornerstone in creating one of the country’s foremost media conglomerates. He highlighted the venture’s potential to cater to consumers with a diverse portfolio of digital services, entertainment, and sports content.
The collaboration comes at a time when Reliance and Disney collectively operate streaming services and manage 120 television channels in India. The merger is poised to fortify Reliance’s foothold in India’s burgeoning $28 billion media and entertainment sector, positioning the conglomerate as a formidable player in the rapidly evolving entertainment landscape.
In a symbolic twist, Viacom18 Media Pvt Ltd, under Ambani’s stewardship, clinched streaming rights for the Indian Premier League in 2022, outbidding Disney, setting the stage for a dynamic partnership between two industry titans.
