Reliance Industries Limited, Viacom 18 Media Private Limited (Viacom18), and The Walt Disney Company have announced a strategic joint venture.
The collaboration will amalgamate the operations of Viacom18 and Star India, with notable business personalities Nita M Ambani and Uday Shankar set to play pivotal roles.
As outlined in a joint press release, the merger will see Viacom18's media division integrated into Star India Private Limited through a court-approved scheme of arrangement.
Nita M Ambani, will spearhead the joint venture as chairperson, with Uday Shankar assuming the role of vice chairperson, providing strategic direction.
To fuel the growth strategy of the venture, Reliance Industries has committed an investment of Rs 11,500 crore (USD 1.4 billion) at closing. The transaction values the joint venture at an impressive Rs 70,352 crore (USD 8.5 billion) on a post-money basis, excluding synergies.
Upon completion of formalities, Reliance Industries will hold 16.34 per cent ownership, Viacom18 will own 46.82 per cent, and Disney will possess 36.84 per cent of the joint venture. Disney may also contribute additional media assets, subject to regulatory approvals.
This strategic partnership aims to establish a leading TV and digital streaming platform for entertainment and sports content in India, consolidating renowned media assets such as Colors, StarPlus, StarGOLD, Star Sports, and Sports18. The joint venture will serve over 750 million viewers across India and cater to the global Indian diaspora.
By leveraging Viacom18's and Star India's expertise alongside Disney's acclaimed content, the joint venture pledges to revolutionize India's media and entertainment industry, offering high-quality, diverse content accessible anytime, anywhere.
Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, hailed the agreement as a milestone, stating, "This strategic joint venture will enable us to deliver unparalleled content at affordable prices to audiences across the nation."
Bob Iger, CEO of The Walt Disney Company, expressed enthusiasm for the venture, highlighting India's vast market potential. "Together, we will create one of the country's leading media companies, better serving consumers with a broad portfolio of digital services and entertainment content," he remarked.
Uday Shankar, Co-founder of Bodhi Tree Systems, emphasized the venture's commitment to delivering exceptional value. "This joint venture is poised to shape the future of entertainment in India," he stated.
The transaction, subject to regulatory approvals, is anticipated to conclude in the last quarter of 2024 or the first quarter of 2025.
Once finalized, the joint venture is set to redefine India's media landscape, offering consumers an innovative and comprehensive entertainment
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