Reliance Industries Limited (RIL), Viacom18 Media Private Limited, and The Walt Disney Company have announced the completion of a merger between Viacom18’s media and JioCinema businesses with Star India Private Limited (SIPL) following approvals from the National Company Law Tribunal (NCLT) Mumbai, the Competition Commission of India (CCI), and other regulatory bodies. RIL has invested Rs 11,500 crore (approximately $1.4 billion) into the joint venture, valuing it at Rs 70,352 crore (around $8.5 billion) on a post-money basis.
Following the transaction, RIL holds a 16.34% stake in the joint venture, Viacom18 holds 46.82%, and Disney holds 36.84%. Nita Ambani will serve as Chairperson, with Uday Shankar as Vice Chairperson. The JV combines well-known media brands in India, including Star and Colors on television, and JioCinema and Hotstar on digital platforms.
“With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. 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,” Mukesh D Ambani, chairman and managing director, Reliance Industries Limited, said.
The joint venture plans to offer a variety of content across entertainment and sports for audiences in India and globally. It operates over 100 TV channels, produces over 30,000 hours of TV content annually, and serves a combined digital subscriber base of over 50 million across JioCinema and Hotstar. The JV also has an extensive portfolio of sports rights, including cricket and football.
“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,” said Robert A. Iger, chief executive officer, The Walt Disney Company. “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.”
The CCI approved the transaction on August 27, 2024, with voluntary modifications proposed by the parties. Regulatory approvals have also been obtained from anti-trust authorities in the EU, China, Turkey, South Korea, and Ukraine.
The JV will be led by three CEOs: Kevin Vaz overseeing entertainment across platforms, Kiran Mani leading digital operations, and Sanjog Gupta heading sports content. In a separate transaction, RIL acquired Paramount Global’s 13.01% stake in Viacom18 for Rs 4,286 crore. As a result, Viacom18 is now owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd., and 15.97% by Bodhi Tree Systems.
“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 deliver 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,” Uday Shankar, co-founder, Bodhi Tree Systems, said.
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