Reliance & Walt Disney officially announce merger deal
Reliance Industries Limited, Viacom 18 Media Private Limited and The Walt Disney Company has announced a merger deal to form a joint venture to combine the businesses of Viacom18 and Star India.
The transaction will see Viacom18 be merged into Star India Private Limited through a court-approved scheme of arrangement. Reliance will pump in US$ 1.4 billion into the Joint Venture for its growth strategy.
The transaction values the JV at US$ 8.5 billion on a post-money basis, excluding synergies. The entity will be controlled by Reliance and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney. The deal includes the merger of leading services like Star Plus, Colors, Star Gold and Colors Cineplex and sporting broadcasters like Star Sports and Sports18. JioCinema and Hotstar will also come under one umbrella.
Nita M. Ambani will be the Chairperson of the merged entity, with Uday Shankar as Vice Chairperson providing strategic guidance.
Speaking about the JV, Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, said, “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance group.” Mr. Bob Iger, CEO of The Walt Disney Company, said, “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create longterm value for the company. Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content.”
Uday Shankar, Co-founder of Bodhi Tree Systems, said, “We are privileged to be enhancing our relationship with Reliance to now also include Disney, a global leader in media & entertainment. All of us are committed to delivering exceptional value to our audiences, advertisers, and partners. This joint venture is poised to shape the future of entertainment in India and accelerate the Hon’ble Prime Minister’s vision of making Digital India a global exemplar.”
The merger is expected to be completed in the last quarter of Calendar Year 2024 or first quarter of Calendar Year 2025.
