RIL, Disney To Merge Viacom18 and Star India; Reliance To Invest Rs11,500 Crore in JV
Moneylife Digital Team 28 February 2024
Reliance Industries Ltd (RIL), its unit Viacom 18 Media Pvt Ltd and The Walt Disney Company have announced the signing of binding definitive agreements to form a joint venture (JV) that will combine the businesses of Viacom18 and Star India. As part of the transaction, the media undertaking of Viacom18 will be merged into Star India Pvt Ltd (SIPL) through a court-approved scheme of arrangement. RIL will invest Rs11,500 crore or about US$1.4bn (billion) in the JV.
 
Post-completion, the JV will be controlled by RIL and own 16.34%, while 46.82% would be owned by Viacom18 and 36.84% by Disney. Nita Ambani will be the chairperson of the JV, with Uday Shankar as vice -chairperson, providing strategic guidance. 
 
The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a licence to more than 30,000 Disney content assets, providing a full suite of entertainment options for the Indian consumer.
 
In a statement, Mukesh D Ambani, chairman & managing director (CMD) of RIL, says, "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."
 
The combination of the media expertise, cutting-edge technology and diverse content libraries of Viacom18 and Star India will allow the JV to offer more appealing domestic and global entertainment content and sports live-streaming services while delivering an innovative and convenient digital entertainment experience at affordable prices, RIL says.
 
"We are excited for the opportunities this joint venture will provide to create long-term 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," says Bob Iger, CEO of Disney.
 
According to RIL, the JV will be one of the leading TV and digital streaming platforms for entertainment and sports content in India, bringing together iconic media assets across entertainment like Colors, StarPlus, StarGOLD and sports such as Star Sports and Sports18, including access to highly anticipated events across television and digital platforms through JioCinema and Hotstar. The JV will have over 750mn (million) viewers across India and will also cater to the Indian diaspora worldwide.
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