Reliance, Disney Complete $8.5 Billion Merger to Create India’s Largest Media Powerhouse

On November 14, 2024, Reliance Industries Ltd (RIL), led by billionaire Mukesh Ambani, along with its subsidiary Viacom18 Media Pvt Ltd and the Walt Disney Company, announced the completion of a merger to form a new joint venture (JV) valued at ₹70,532 crore ($8.5 billion). This merger creates India’s largest media and entertainment company, aiming to reach massive audiences across both TV and digital streaming platforms.

Merging Media Assets for Scale and Reach

The deal integrates Viacom18’s media businesses and JioCinema streaming service with Disney’s Star India Private Limited (SIPL). RIL has invested ₹11,500 crore (around $1.4 billion) to drive growth for the JV. This newly created entity will boast 120 TV channels and 2 major streaming platforms, allowing it to directly compete with top entertainment giants like Sony, Netflix, and Amazon.

Ownership Breakdown

After the merger, RIL controls a 16.34% stake in the JV, Viacom18 holds a majority stake of 46.82%, and Disney owns the remaining 36.84%.

Leadership and Structure of the New JV

Nita Ambani will chair the JV, while Uday Shankar will serve as Vice Chairperson, offering strategic guidance. The company is structured into 3 divisions, each with a CEO:

• Entertainment: Oversees channels such as Reliance’s Colors and Disney’s Star, led by Kevin Vaz.
• Digital: Includes streaming platforms JioCinema and Hotstar, led by Kiran Mani, former Google executive.
• Sports: Manages sports content, led by Sanjog Gupta, who oversees Disney’s sports assets in India, including IPL, ICC, and BCCI broadcasting rights.

These leaders bring unique expertise to guide the JV into new growth and innovation.

Expanding Entertainment for a New Era

The JV brings together India’s leading TV and digital streaming brands, combining Reliance’s Colors channels and Disney’s Star with JioCinema and Hotstar. This integrated platform aims to provide affordable, high-quality entertainment to Indian and global audiences.

Scale of the Joint Venture

The JV will be one of India’s largest media companies, with a projected combined revenue of ₹26,000 crore (about $3.1 billion) for the fiscal year ending March 2024. The entity operates over 100 TV channels and produces more than 30,000 hours of TV content each year, with over 50 million digital subscribers on JioCinema and Hotstar.

Regulatory Approval

The Competition Commission of India (CCI) approved the transaction in August 2024, with minor compliance requirements. Similar approvals were obtained from regulators in the EU, China, Turkey, South Korea, and Ukraine, along with India’s National Company Law Tribunal (NCLT) and the Ministry of Information and Broadcasting.

Additional Investment in Viacom18

Separately, RIL acquired a 13.01% stake in Viacom18 from Paramount Global for ₹4,286 crore. This brings RIL’s total ownership in Viacom18 to 70.49%, with Network18 Media & Investments Ltd holding 13.54% and Bodhi Tree Systems, co-founded by James Murdoch and Uday Shankar, holding 15.97%.

On November 18, 2024, Reliance Industries share price opened at ₹1,267.60, touching the day’s high of ₹1,272.90 ,as of 03:10 PM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.