It’s official! The much-anticipated mega merger between Reliance Industries and Walt Disney was announced on Wednesday. Nita Ambani, wife of RIL Chairman Mukesh Ambani, will head the joint venture, the official statement said. The JV, which has been valued at Rs 70,352 crore ($8.5 billion), will see Uday Shankar as in the role of Vice Chairperson.
Speaking about the JV, RIL CMD Mukesh D Ambani said, “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance group.”
The deal, which is subject to customary approvals such as from the shareholder and regulatory authorities, is likely to be completed “in the last quarter of CY 2024 or first quarter of CY 2025,” the official statement said.
Talking about the deal, Walt Disney CEO Bob Iger said, “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long- term value for the company. Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content.”
Goldman Sachs has been engaged as the financial and valuation advisor, while Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co, and Shardul Amarchand Mangaldas & Co serve as legal counsels to RIL and Viacom18 in the transaction. Ernst & Young has conducted an independent valuation for RIL and Viacom18. Additionally, HSBC India has provided a Fairness Opinion to Viacom18 in its capacity as a financial advisor.
The JV will emerge as a prominent television and digital streaming platform for entertainment and sports content in India. It will consolidate media assets from both sectors, such as Colors, StarPlus, and StarGOLD, as well as sports channels like Star Sports and Sports18. This collaboration will offer access to content through both traditional television and digital platforms, including JioCinema and Hotstar. With a combined viewership exceeding 750 million in India, the JV will also serve the Indian diaspora worldwide.