The national company law tribunal (NCLT) has approved the merger of Reliance Industries-owned Viacom 18 Media, the entity managing the group's media and entertainment assets, with Star India. This significant decision follows the proposal to transfer and vest the Media Operations Undertaking from Viacom 18 and Jio Cinema into Digital 18, a subsidiary of Viacom 18.
Last week, a two-member bench of the NCLT granted its approval for the composite scheme of arrangement involving Viacom 18, Digital 18, and Star India, the latter being a unit of the global media giant, The Walt Disney Company. This ruling comes just two days after the Competition Commission of India (CCI) also approved the merger of the media assets of Reliance Industries and The Walt Disney Company, a deal that is set to create India’s largest media empire, valued at over Rs70,000 crore
In its order, the NCLT noted, "From the material on record, the Scheme appears to be fair and reasonable and is not violative of any provisions of law and is not contrary to public policy." The order also emphasised that the scheme would only become effective once the approval from CCI is received.
The scheme detailed the transfer and vesting of media operations undertaking from Viacom 18 and Jio Cinema into Digital 18, followed by the demerger, transfer and vesting of the V18 Undertaking from Digital 18 into Star India. The NCLT's approval was based on the fulfilment of all statutory compliances, making the scheme absolute as per the petition's prayers.
Reliance chairman Mukesh Ambani, commenting on the merger, described it as the dawn of a new era in India's entertainment industry. He welcomed Disney into the Reliance family and noted that the expanded media business, similar to Jio and the retail arm of Reliance, would become a vital growth engine within the Reliance ecosystem.
The merger, initially announced six months ago, underwent scrutiny by the anti-trust regulator and required the nod from NCLT. CCI, in its approval, had highlighted that the "proposed combination involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited, and Star Television Productions Limited" was subject to voluntary modifications agreed upon by the involved parties. However, the specific modifications were not disclosed by the CCI.
Under the finalised deal, Reliance Industries Ltd (RIL) and its affiliates, led by Mukesh Ambani, will hold a 63.16% stake in the newly formed entity, which will manage two streaming services and 120 television channels. The Walt Disney Company will retain the remaining 36.84% stake, making the combined entity India's largest media house.
As part of the agreement, Reliance Industries has committed to an investment of nearly Rs11,500 crore into the joint venture, providing it with the resources to compete with global rivals like Sony and Netflix. Nita Ambani, wife of RIL chairman Mukesh Ambani, is set to lead the joint venture, while Uday Shankar will serve as the vice-chairperson.
