Reliance Industries' Massive Merger: Disney Joining Hands for Rs 70,352 Crore Media Venture

Mumbai: In a significant development, Mukesh Ambani-led Reliance Industries Limited has announced the merger of its media businesses with entertainment giant Disney and Viacom18, marking a major game-changer for the Indian entertainment industry. The joint venture (JV) houses top-notch brands like 'Star', 'Colors', 'JioCinema', and 'Hotstar' on both TV and digital channels.

Following approvals from the National Company Law Tribunal (NCLT), Mumbai, the Competition Commission of India, and other regulatory bodies, the JV will be one of the largest media & entertainment companies in India with a pro forma combined revenue of approximately Rs 26,000 crore.

RIL has injected Rs 11,500 crore into the joint venture to support its expansion. As part of the agreement, the JV has issued shares to Viacom18 and RIL in exchange for assets and cash, respectively. Nita M. Ambani will be the Chairperson of the JV, while Uday Shankar will serve as Vice Chairman.

"We transaction values theJV at Rs 70,352 crore on a post-money basis, excluding synergies," said the companies in a joint statement. The JV is controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and Disney will hold 36.84%.

RIL Chairman Mukesh D. Ambani hailed the merger as a major breakthrough for the Indian entertainment industry. "With the formation of this JV, the Indian media and entertainment industry is entering a transformational era."

Disney CEO Robert A. Iger expressed his excitement about joining forces with Reliance. "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."