A day after the Competition Commission of India (CCI) approved the mega merger of media assets between Reliance Industries and The Walt Disney Company, Reliance Chairman Mukesh Ambani declared that the deal heralds a new era for India's entertainment industry.
Speaking at the Reliance Industries Annual General Meeting (AGM) on Thursday, Ambani welcomed Disney into the Reliance family and likened the expanded media business to the transformative impact of Jio and Reliance Retail. He emphasised that the merger combines content creation with digital streaming, stating, "This marks the beginning of a new era in India's entertainment industry."
The CCI's approval, granted on Wednesday, allows the creation of India’s largest media conglomerate, valued at over Rs 70,000 crore. The merger involves Reliance's media assets through Network 18, which includes TV18 news channels, entertainment channels under the 'Colors' brand, and sports channels.
Ambani highlighted the merger's potential, stating, "We will provide world-class digital entertainment across the spectrum and cater to every consumer's taste. Our digital-first approach will deliver unparalleled content at affordable prices." The combined entity will include Disney Hotstar and Jio Cinema, two leading OTT streaming platforms.
The deal, first announced six months ago, underwent scrutiny from the anti-trust regulator, with approval granted after both parties proposed modifications to the original structure. Under the agreement, Reliance Industries and its affiliates will hold a 63.16 per cent stake in the new entity, while The Walt Disney Company will retain a 36.84 per cent stake.
Reliance has also committed to investing approximately Rs 11,500 crore into the joint venture, positioning it to compete with rivals such as Sony and Netflix. Nita Ambani, wife of Mukesh Ambani, will lead the joint venture, with Uday Shankar serving as Vice Chairperson.
The CCI has cleared the proposed merger involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited (SIPL), and Star Television Productions Limited (STPL), subject to the fulfilment of voluntary modifications. Viacom18 is part of the Reliance group, while SIPL and STPL are wholly owned by The Walt Disney Company.
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