Reliance, Disney and Viacom18 complete ₹70,352 crore media merger; Nita Ambani named chairperson
Reliance Industries Ltd (RIL), Viacom18 Media Private Ltd (Viacom18) and The Walt Disney Company on Thursday (November 14) announced the successful completion of a media merger following approvals from the National Company Law Tribunal (NCLT) Mumbai, the Competition Commission of India (CCI), and other regulatory bodies.
The merger integrates Viacom18’s media and JioCinema businesses into Star India Private Ltd (SIPL), forming a new joint venture (JV). To support the JV’s growth initiatives, RIL has invested ₹11,500 crore. In return, the JV has issued shares to Viacom18 and RIL, compensating Viacom18 for its assets and RIL for its cash investment.
The transaction values the JV at ₹70,352 crore on a post-money basis, excluding synergies. With the closing of the transactions noted above, the JV is now controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney. Nita Ambani will be the chairperson of the JV, with Uday Shankar, as vice chairperson, providing strategic guidance to the JV.
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The joint venture is home to the most iconic and engaging media brands in India across TV and digital platforms. The combination of Star and Colors on the television side and JioCinema and Hotstar on the digital front will provide extensive choice of content across entertainment and sports to viewers in India and globally.
The JV will be one of the largest media and entertainment companies in India with pro forma combined revenue of approximately ₹26,000 crore for the fiscal year ended in March 2024. It operates over 100 TV channels and produces 30,000+ hours of TV entertainment content annually.
The JioCinema and Hotstar digital platforms have an aggregate subscription base of over 50 million. The JV holds a portfolio of sports rights across cricket, football and other sports.
The CCI approved the transaction on August 27, 2024, subject to compliance with certain voluntary modifications offered by the parties. Apart from the CCI, the transaction has been approved by anti-trust authorities in the EU, China, Turkey, South Korea and Ukraine.
Speaking about the JV, Mukesh D Ambani, Chairman & Managing Director of Reliance Industries Ltd, said, “With the formation of this JV, the Indian media and entertainment industry is entering a transformational era.”
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“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,” he added.
“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,” said Robert A. Iger, Chief Executive Officer, of The Walt Disney Company.
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In a separate transaction, RIL has bought out Paramount Global’s entire stake of 13.01% in Viacom18 for ₹ 4,286 crore. As a result, Viacom18 is owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd and 15.97% by Bodhi Tree Systems, on a fully-diluted basis.
Shares of Reliance Industries Ltd ended at ₹1,267.70, up by ₹15.45, or 1.23%, on the BSE.
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