The joint venture will combine the businesses of Viacom18 and Star India, and could disrupt the media and entertainment industry in India
The merged entity will be controlled by RIL and owned 16.34 percent by RIL, 46.82 percent by Viacom18 and 36.84 percent by Disney; Image: Shutterstock
After close to four months of reported talks, Reliance Industries Limited (RIL), Viacom 18 Media Private Limited and The Walt Disney Company have announced the signing of binding definitive agreements to form a joint venture that will combine the businesses of Viacom18 and Star India.
Reliance has agreed to invest about Rs 11,500 crore into the joint venture for its growth strategy. This transaction values the joint venture at Rs 70,352 crore on a post-money basis, excluding synergies. Post completion of the above steps, the merged entity will be controlled by RIL and owned 16.34 percent by RIL, 46.82 percent by Viacom18 and 36.84 percent by Disney. Currently, James Murdoch and Uday Shankar-backed Bodhi Tree owns 15.97 percent of Viacom18, while Paramount holds 13 percent.
Disney is also expected to contribute certain media assets to the JV, subject to regulatory third-party approvals. RIL’s Nita Ambani will be the chairperson and former Disney executive Uday Shankar, the vice chairperson of the merged entity.
“This is a landmark agreement that heralds a new era in the Indian entertainment industry,” stated Mukesh Ambani, chairman and managing director of Reliance Industries. “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.”
This newly formed media giant will be one of the leading TV and digital streaming platform for entertainment and sports content in India—with media assets across entertainment (including Colors, StarPlus, StarGOLD) and sports (Star Sports and Sports18) available across television, as well as on OTT platforms such as JioCinema and Hotstar.