Reliance, Viacom 18, Walt Disney complete merger, creating India’s largest integrated media platform

This joint venture (JV) is valued at approximately Rs 70,352 crore (~US$8.5 billion) post-money, excluding synergy benefits, reported The Economic Times.

The ownership structure of the JV stands as 16.34% by RIL, 46.82% by Viacom18, and 36.84% by Disney, with RIL retaining control.

The JV’s strategic leadership will be spearheaded by Chairperson Nita M. Ambani and Vice Chairperson Uday Shankar, aiming to enhance entertainment and sports content offerings for audiences in India and globally.

Major brands such as ‘Star’ and ‘Colors’ in television, as well as digital platforms ‘JioCinema’ and ‘Hotstar’, are now part of the combined entity, which will produce over 30,000 hours of content yearly across 100+ channels.

The JV’s digital presence through JioCinema and Hotstar already has over 50 million subscribers and includes a valuable portfolio of sports rights, covering major cricket and football events.

Regulatory approvals for the merger were obtained from the National Company Law Tribunal (NCLT) in Mumbai, the Competition Commission of India (CCI), and anti-trust bodies across regions including the EU, China, Turkey, South Korea, and Ukraine. For FY24, the combined entity’s pro forma revenue is projected to reach around Rs 26,000 crore.

Operationally, the JV will be structured under three CEOs overseeing specific verticals: Kevin Vaz for entertainment, Kiran Mani for digital, and Sanjog Gupta for sports.

RIL Chairman Mukesh D. Ambani praised the merger as a turning point in Indian media: “With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer, will ensure unparalleled content choices at affordable prices for Indian viewers."

Disney CEO Robert A. Iger expressed optimism about the venture, noting, “By joining forces with Reliance, we are able to expand our presence in this important media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services."

Separately, RIL acquired Paramount Global’s 13.01% stake in Viacom18 for Rs 4,286 crore.

Post-acquisition, Viacom18’s ownership structure is now 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd., and 15.97% by Bodhi Tree Systems.

Uday Shankar, Co-Founder of Bodhi Tree Systems, commented on the partnership: “James and I are excited to be partners in this journey to disrupt the media and entertainment industry in India... The merger of Viacom18 and Star India offers a unique opportunity to reorient the industry to better serve diverse cohorts of consumers across the country.”

The merged entity now stands as India’s largest integrated media platform, set to deliver a comprehensive and innovative content experience across television and digital mediums.