Disney-Viacom18 Merger to be Officially Completed by November 13
Mumbai, India: The highly anticipated merger between Disney Star and Reliance Industries' Viacom18 is nearing completion, with reports indicating that the deal will be officially finalized as early as November 13. This joint venture is set to reshape the media landscape in India, marking a significant shift for the industry.
The new entity, Jio Star, will combine Viacom18's assets and Disney Star under Reliance's strategic leadership. As part of this integration, both companies have begun transitioning key operational functions, including setting up new company email IDs, restructuring departments, and shifting certain business units to Viacom18.
The website for Jio Star, Jiostar.com, is now live with a "Coming Soon" message, while a Wikipedia page has also been created, signaling that the new brand is preparing for its public launch. The RIL-Disney joint venture commands a substantial share of India's media and entertainment market, holding 42 per cent of the TV segment and 34 per cent of the OTT space.
However, the Competition Commission of India (CCI) has imposed several conditions on the merger, including the divestment of seven TV channels. The merged entity has also voluntarily decided not to bundle TV ad rates for all cricket events throughout the year.
Reliance Industries will hold the majority stake in Jio Star with 46.82 per cent, while Viacom18 will own 36.84 per cent, and Disney will retain 16.34 percent of the venture. The deal includes a substantial financial commitment from Reliance, investing Rs 1,500 crore into Jio Star.
Industry analysts expect this move to position the merged entity to leverage Reliance's robust telecom and digital infrastructure, potentially transforming the competitive landscape in the Indian market.
As part of the merger, key leaders from Disney Star and Viacom18 have decided to leave the company. The new leadership structure for Jio Star will undergo significant changes as both companies move forward with the integration process.
The creation of Jio Star is expected to alter the dynamics of the Indian media industry, consolidating some of the country's largest entertainment assets. This move has sparked interest among industry experts and analysts, who see potential benefits from Reliance's deep pockets and technological expertise driving growth and innovation in an increasingly competitive media market.