Reliance And Disney Complete Rs 70,352-Crore Mega Media Merger

Last Updated:November 14, 2024, 18:45 IST

Reliance Industries holds a 16.34 per cent stake throughout the JV, whereas its step-down unit Viacom18 holds 46.82 per cent and Disney the rest 36.84 per cent. Nita M Ambani could be the Chairperson of the JV, with Uday Shankar as Vice Chairperson providing strategic…Read More

Reliance Industries Limited, Viacom 18 Media Private Limited, and The Walt Disney Company launched on Thursday that following the approval by the NCLT Mumbai, Competition Commission of India and completely different regulatory authorities, the merger of the media and JioCinema corporations of Viacom18 into Star India Private Limited has become environment friendly. In addition, RIL has invested ₹ 11,500 crore (~US$ 1.4 billion) into the JV for its progress. The JV has allotted shares to Viacom18 and RIL as consideration for the belongings and cash, respectively.

The transaction values the JV at ₹70,352 crore (~US$ 8.5 billion) on a post-money basis, excluding synergies. At the closing of the transactions well-known above, the JV is managed by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.

Nita M Ambani could be the Chairperson of the JV, with Uday Shankar as Vice Chairperson providing strategic guidance to the JV.

The JV is residence to in all probability essentially the most iconic and engaging media producers in India all through TV and digital platforms. The combination of Star and Colors on the television facet and JioCinema and Hotstar on the digital entrance will current an in depth different of content material materials all through leisure and sports activities actions to viewers in India and globally.

The formation of the JV will herald a model new interval in India’s leisure commerce for purchasers. This distinctive three manner partnership of Reliance and Disney brings collectively the companies’ content material materials creation and curation prowess, and world-class digital streaming capabilities along with a digital-first technique that may help the JV ship unparalleled content material materials selections at cheap prices to Indian viewers and the Indian diaspora globally.

The JV will be one in all many largest Media & Entertainment companies in India with skilled forma blended earnings of roughly ₹26,000 crore (~US$ 3.1 billion) for the fiscal 12 months led to March 2024. The JV operates over 100 TV channels and produces 30,000+ hours of TV leisure content material materials yearly. The JioCinema and Hotstar digital platforms have an combination subscription base of over 50 million. The JV holds a portfolio of sports activities actions rights all through cricket, soccer and completely different sports activities actions.

The Competition Commission of India (CCI) accredited the transaction on 27 August 2024, matter to compliance with positive voluntary modifications offered by the occasions. Apart from the CCI, the transaction has been accredited by antitrust authorities throughout the EU, China, Turkey, South Korea and Ukraine.

Speaking in regards to the JV, Mukesh D Ambani, Chairman & Managing Director of Reliance Industries Limited, talked about, “With the formation of this JV, the Indian media and leisure trade is getting into a transformational period. Our deep inventive experience and relationship with Disney, together with our unmatched understanding of the Indian client will guarantee unparalleled content material decisions at inexpensive costs for Indian viewers. I’m very excited concerning the JV’s future and want it all of the success.”

“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,” talked about Robert A Iger, Chief Executive Officer, The Walt Disney Company. “By becoming a member of forces with Reliance, we’re in a position to develop our presence on this vital media market and ship viewers an much more strong portfolio of leisure, sports activities content material, and digital providers.”

Uday Shankar, Co-Founder of Bodhi Tree Systems, stated, “James and I are excited to be partners in this journey to disrupt the media and entertainment industry in India. The new organisation is committed to delivering an unprecedented level of creativity, disruption and new-age consumer experience. As media consumption continues to move to an integrated TV-digital ecosystem, the merger of Viacom18 and Star India offers a unique opportunity to reorient the industry to better serve diverse cohorts of consumers across the country. Together, we aim to build India’s largest integrated media platform which will deliver unparalleled experiences in innovative and exciting ways.”

The JV will be spearheaded by three CEOs who will lead the company right into a model new interval of ambition and disruption. Kevin Vaz will head the leisure organisation all through platforms. Kiran Mani will take value of the blended digital organisation. Sanjog Gupta will lead the blended sports activities actions organisation. Together, they’ll leverage their distinctive strengths to cultivate a daring, transformative imaginative and prescient that challenges the established order and models new necessities throughout the commerce.

In a separate transaction, RIL has bought out Paramount Global’s full stake of 13.01% in Viacom18 for ₹4,286 crore. As a end result, Viacom18 is owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd and 15.97% by Bodhi Tree Systems, on a completely diluted basis.

About Reliance Industries Limited

Reliance is India’s largest private sector agency, with a consolidated earnings of INR 10,00,122 crore (US$ 119.9 billion), cash income of INR 1,41,969 crore (US$ 17.0 billion) and web income of INR 79,020 crore (US$ 9.5 billion) for the 12 months ended March 31, 2024. Reliance’s actions span hydrocarbon exploration and manufacturing, petroleum refining and promoting, petrochemicals, superior provides and composites, renewables (picture voltaic and hydrogen), retail and digital suppliers.

Currently ranked 86th, Reliance is a very powerful private sector agency from India to be featured in Fortune’s Global 500 itemizing of World’s Largest Companies for 2024. The agency stands forty fifth throughout the Forbes Global 2000 rankings of ‘World’s Largest Public Companies’ for 2023, the perfect amongst Indian companies. Reliance has been recognised in Time’s itemizing of the 100 Most Influential Companies of 2024, marking the one Indian agency to have achieved this honour twice. Reliance is the top-ranked Indian agency and the one one throughout the excessive 100 on Forbes’ World’s Best Employers 2023 itemizing. Additionally, it’s featured amongst LinkedIn’s Top Companies 2023: The 25 Best Workplaces To Grow Your Career In India (

About The Walt Disney Company

The Walt Disney Company, together with its subsidiaries, is a primary diversified worldwide family leisure and media enterprise that options three enterprise segments: Entertainment, Sports and Experiences. Disney is a Dow 30 agency and had an annual earnings of $88.9 billion in its fiscal 12 months 2023.

About Bodhi Tree Systems

Bodhi Tree Systems is a strategic investor in consumer know-how options in Southeast Asia, with a specific cope with India. The entity is a platform of James Murdoch’s Lupa Systems and Uday Shankar and was established in 2021 to find and spend cash on Southeast Asia and the Middle East. In addition to media and education, Bodhi Tree expects to spend cash on completely different consumer know-how sectors akin to healthcare that characterize necessary options nonetheless endure from an absence of capital and innovation. Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, is an investor in Bodhi Tree Systems.

News enterprise Reliance And Disney Complete Rs 70,352-Crore Mega Media Merger