Reliance and Disney Form Media and Entertainment Giant in India with $8.5B Deal
Mumbai, India - In a major move that is expected to revolutionize the Indian media and entertainment landscape, Reliance Industries and The Walt Disney Company have completed an $8.5 billion deal to form a joint venture that brings together the JioCinema business of Reliance and Star India, Disney’s largest network in India.
The transaction, which has been approved by regulatory authorities such as the NCLT Mumbai and the Competition Commission of India, paves the way for one of the country's largest media and entertainment companies to be formed. The joint venture will be led by Chairperson Nita M. Ambani and Vice-Chairperson Uday Shankar, who is also Co-Publisher of Bodhi Tree Systems with James Murdoch.
The deal, which sees Reliance Industries owning 16.34% of the venture directly and through a consolidated stake in Viacom18, will create a robust media and entertainment giant that operates over 100 TV channels and produces more than 30,000 hours of content yearly. The joint venture is also expected to produce an aggregate subscription base of over 50 million for its JioCinema and Hotstar streaming platforms.
Revenues of the new business are projected for $3.1 billion in the fiscal year ending March 2024, making it one of India's largest media and entertainment companies.
"We're thrilled to be partnering with Reliance Industries on this exciting venture," said Bob Iger, CEO of Disney. "Through this collaboration, we're expanding our presence in a vital media market and further enhancing our offerings for consumers."
In addition to the joint venture, Reliance has also purchased Paramount Global's 13.01% stake in Viacom18, increasing its shareholding to 70.49%.
Reliance Industries Chairman and Managing Director Mukesh Ambani said that the merger is set to propel India’s media industry into a transformative era while offering unparalleled content choices at affordable prices for Indian viewers.
With this deal, Reliance Industries – one of India's largest companies - continues to solidify its presence in a rapidly evolving media landscape.