Viacom18 and Star India Merger Creates Largest Indian Media Entity

Mumbai/Burbank, California: The merger of Viacom18 and Star India has been approved by regulatory authorities in India and overseas, paving the way for one of the largest media entities in the country. Reliance Industries Limited (RIL) and The Walt Disney Company have jointly invested Rs11,500 crore ($ 1.4 billion) into this joint venture (JV), which is set to revolutionize the Indian entertainment industry.

The JV now values at Rs70,352 crore ($8.5 billion), after synergies were excluded from the calculation. Nita Ambani will be its chairperson while Uday Shankar, co-founder of Bodhi Tree Systems, has been appointed as the vice chairman. This combination of companies brings together world-class content creation, curation prowess, and digital streaming capabilities.

The new entity, controlled by RIL (16.34% stake), Viacom18 (46.82%), and Disney (36.84%), will operate over 100 TV channels and produce 30,000+ hours of entertainment content annually, making it one of the largest media companies in India. JioCinema and Hotstar digital platforms have an aggregate subscription base of over 50 million.

This joint venture is seen as one of the most significant developments in India’s entertainment industry, bringing together Disney's creative expertise with RIL's understanding of the Indian consumer to deliver unparalleled content choices at affordable prices.

"We are excited about the JV's future and wish it all the success," said Mukesh Ambani, chairman and managing director of Reliance Industries Limited.

"This is an exciting moment for our two companies... By joining forces with Reliance, we are able to expand our presence in this important media market."

The new venture will be led by three CEOs: Kevin Vaz (entertainment), Kiran Mani (combined digital organisation), and Sanjog Gupta (combined sports organisation).

Meanwhile, RIL has bought out Paramount Global's 13.01% stake in Viacom18 for Rs 4,286 crore in a separate transaction.

This development marks a significant shift in India’s entertainment industry landscape and is expected to have far-reaching implications for the country's consumers and content creators.