Reliance Ventures Set to Finalise Disney-Viacom18 Merger by November 13
Mumbai: The much-anticipated merger between Disney Star and Viacom18 is nearing its completion, with sources indicating that the deal will be officially finalized as early as November 13.
The joint venture, set to reshape the Indian media landscape, combines Viacom18's assets and Disney Star under Reliance Industries' strategic leadership. Upon completion, Jio Star – a new entity poised to launch soon – will oversee the merged entity, with Reliance holding majority stake (46.82%) followed by Viacom18 (36.84%) and Disney retaining 16.34%.
Insiders say key operational functions are being restructured, including setting up new company email IDs, restructuring departments, and shifting certain business units to Viacom18. Additionally, the website Jiostar.com is live albeit displaying a "Coming Soon" message, while a Wikipedia page for Jio Star has been created, signaling preparations for its public launch.
Industry reports suggest that the merged entity will command 42% of India's TV segment and 34% of OTT space, dominating the rapidly growing sports segment with an 85% market share. Reliance's strategic leadership is expected to leverage its robust telecom and digital infrastructure, potentially disrupting the competitive landscape in favor of emerging players.
The CCI's 48-page detailed order imposed conditions on the merger including divestment of seven TV channels and non-bundling of TV ad rates for cricket events throughout the year. The deals aim to ensure fair competition in the media market and prevent monopolistic practices post-merger.
As per the initial terms, Reliance is investing Rs 1,500 crore into the venture. This strategic alliance positions Jio Star to accelerate growth and innovation in a competitive Indian media landscape.
Analysts see this move as a transformative step for the merged entity, bolstered by Jio Mobile and Jio Fibre's digital scale offering the largest variety of content across TV and digital platforms. Industry experts are closely watching the next phase of expansion fueled by Reliance's deep pockets and technological expertise.