Reliance Industries Announces Completion of Viacom18 Merger with Disney
Mumbai: Reliance Industries Limited, Viacom 18 Media Private Limited, and The Walt Disney Company have announced that the merger of their media businesses has become effective following regulatory approvals. The joint venture (JV), to be one of the largest media companies in India, will operate under Star India Private Limited and hold a portfolio of TV channels and sports rights.
The JV was valued at nearly ₹ 70,000 crore (~US$ 8.5 billion) on a post-money basis and is controlled by RIL with Disney owning around 36.84% stake. Nita M. Ambani will serve as chairperson, while Uday Shankar will act as vice chairperson providing strategic guidance.
The formation of the JV heralds a new era in India's entertainment industry for consumers, bringing together content creation and curation prowess from RIL and Disney along with world-class digital streaming capabilities. The venture aims to deliver unparalleled content choices at affordable prices to viewers in India and globally.
This milestone transaction has been backed by significant investment of ₹ 11,500 crore (~US$ 1.4 billion) from RIL into the JV for its growth. The venture's pro forma combined revenue is expected to reach approximately ₹ 26,000 crore (~US$ 3.1 billion) for the fiscal year ended March 2024.
Commenting on the merger, Mukesh D Ambani stated that this joint venture will ensure the Indian media and entertainment industry enters a transformational era with unmatched understanding of the Indian consumer and unparalleled content choices at affordable prices.
Bob A. Iger also welcomed the partnership and highlighted its potential in expanding presence in India's growing media market while delivering viewers an robust portfolio of entertainment, sports content, and digital services that will cater to diverse cohorts.
Meanwhile, Uday Shankar expressed optimism about partnering with Reliance to disrupt the India media landscape, adding a new age consumer experience with innovative ways to deliver unparalleled experiences.
As part of this, RIL has bought out Paramount Global's total stake in Viacom18 for ₹ 4,286 crore, changing ownership composition.