Reliance Industries Limited (RIL) and The Walt Disney Company have completed their landmark media joint venture, valuing the combined entity at ₹70,352 crore (US$ 8.5 billion) on a post-money basis, according to a joint announcement on November 14, 2024.
The merger, which received approvals from NCLT Mumbai, Competition Commission of India, and other regulatory authorities, combines Viacom18’s media operations and JioCinema with Star India Private Limited (SIPL). RIL has invested ₹11,500 crore (US$ 1.4 billion) into the joint venture for growth initiatives.
Key Details of the Joint Venture:
- Ownership Structure:
- RIL: 16.34%
- Viacom18: 46.82%
- Disney: 36.84%
- Leadership Team:
- Chairperson: Mrs. Nita M. Ambani
- Vice Chairperson: Mr. Uday Shankar
- Entertainment CEO: Kevin Vaz
- Digital CEO: Kiran Mani
- Sports CEO: Sanjog Gupta
The combined entity boasts significant operational scale:
- Pro forma combined revenue: ₹26,000 crore (US$ 3.1 billion) for FY2024
- Over 100 TV channels
- 30,000+ hours of annual TV entertainment content
- Combined digital platforms (JioCinema and Hotstar) with 50+ million subscribers
In a separate transaction, RIL acquired Paramount Global’s 13.01% stake in Viacom18 for ₹4,286 crore. Post this acquisition, Viacom18’s ownership structure stands at:
- RIL: 70.49%
- Network18 Media & Investments Ltd: 13.54%
- Bodhi Tree Systems: 15.97%
The merger received antitrust approvals from multiple jurisdictions including India, EU, China, Turkey, South Korea, and Ukraine. The Competition Commission of India granted approval on August 27, 2024, subject to certain voluntary modifications offered by the parties.
Speaking about the JV, Mr. Mukesh D Ambani, Chairman & Managing Director of Reliance Industries Limited, said, “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.”
“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 Mr. 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.”
Mr. Uday Shankar, Co-Founder of Bodhi Tree Systems, said, “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.”
