Reliance And Disney Complete Rs 70,352-Crore Mega Media Merger

Last Updated:November 14, 2024, 18:45 IST

Reliance Industries holds a 16.34 per cent stake within the JV, whereas its step-down unit Viacom18 holds 46.82 per cent and Disney the remainder 36.84 per cent. Nita M Ambani would be the Chairperson of the JV, with Uday Shankar as Vice Chairperson offering strategic…Read More

Reliance Industries Limited, Viacom 18 Media Private Limited, and The Walt Disney Company introduced on Thursday that following the approval by the NCLT Mumbai, Competition Commission of India and different regulatory authorities, the merger of the media and JioCinema companies of Viacom18 into Star India Private Limited has change into efficient. In addition, RIL has invested ₹ 11,500 crore (~US$ 1.4 billion) into the JV for its progress. The JV has allotted shares to Viacom18 and RIL as consideration for the belongings and money, respectively.

The transaction values the JV at ₹70,352 crore (~US$ 8.5 billion) on a post-money foundation, excluding synergies. At the closing of the transactions famous above, the JV is managed by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.

Nita M Ambani would be the Chairperson of the JV, with Uday Shankar as Vice Chairperson offering strategic steerage to the JV.

The JV is residence to probably the most iconic and fascinating media manufacturers in India throughout TV and digital platforms. The mixture of Star and Colors on the tv aspect and JioCinema and Hotstar on the digital entrance will present an in depth alternative of content material throughout leisure and sports activities to viewers in India and globally.

The formation of the JV will herald a brand new period in India’s leisure trade for customers. This distinctive three way partnership of Reliance and Disney brings collectively the businesses’ content material creation and curation prowess, and world-class digital streaming capabilities together with a digital-first method that can assist the JV ship unparalleled content material decisions at inexpensive costs to Indian viewers and the Indian diaspora globally.

The JV can be one of many largest Media & Entertainment firms in India with professional forma mixed income of roughly ₹26,000 crore (~US$ 3.1 billion) for the fiscal 12 months led to March 2024. The JV operates over 100 TV channels and produces 30,000+ hours of TV leisure content material yearly. The JioCinema and Hotstar digital platforms have an mixture subscription base of over 50 million. The JV holds a portfolio of sports activities rights throughout cricket, soccer and different sports activities.

The Competition Commission of India (CCI) accredited the transaction on 27 August 2024, topic to compliance with sure voluntary modifications provided by the events. Apart from the CCI, the transaction has been accredited by antitrust authorities within the EU, China, Turkey, South Korea and Ukraine.

Speaking concerning the JV, Mukesh D Ambani, Chairman & Managing Director of Reliance Industries Limited, mentioned, “With the formation of this JV, the Indian media and leisure trade is getting into a transformational period. Our deep inventive experience and relationship with Disney, together with our unmatched understanding of the Indian client will guarantee unparalleled content material decisions at inexpensive costs for Indian viewers. I’m very excited concerning the JV’s future and want it all of the success.”

“This is an exciting moment for our two companies, as well as for India’s consumers, as we create one of the top entertainment entities in the country through this joint venture,” mentioned Robert A Iger, Chief Executive Officer, The Walt Disney Company. “By becoming a member of forces with Reliance, we’re in a position to develop our presence on this vital media market and ship viewers an much more strong portfolio of leisure, sports activities content material, and digital providers.”

Uday Shankar, Co-Founder of Bodhi Tree Systems, said, “James and I are excited to be partners in this journey to disrupt the media and entertainment industry in India. The new organisation is committed to delivering an unprecedented level of creativity, disruption and new-age consumer experience. As media consumption continues to move to an integrated TV-digital ecosystem, 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. Together, we aim to build India’s largest integrated media platform which will deliver unparalleled experiences in innovative and exciting ways.”

The JV can be spearheaded by three CEOs who will lead the corporate into a brand new period of ambition and disruption. Kevin Vaz will head the leisure organisation throughout platforms. Kiran Mani will take cost of the mixed digital organisation. Sanjog Gupta will lead the mixed sports activities organisation. Together, they’ll leverage their distinctive strengths to domesticate a daring, transformative imaginative and prescient that challenges the established order and units new requirements within the trade.

In a separate transaction, RIL has purchased out Paramount Global’s complete stake of 13.01% in Viacom18 for ₹4,286 crore. As a outcome, Viacom18 is owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd and 15.97% by Bodhi Tree Systems, on a totally diluted foundation.

About Reliance Industries Limited

Reliance is India’s largest non-public sector firm, with a consolidated income of INR 10,00,122 crore (US$ 119.9 billion), money revenue of INR 1,41,969 crore (US$ 17.0 billion) and internet revenue of INR 79,020 crore (US$ 9.5 billion) for the 12 months ended March 31, 2024. Reliance’s actions span hydrocarbon exploration and manufacturing, petroleum refining and advertising, petrochemicals, superior supplies and composites, renewables (photo voltaic and hydrogen), retail and digital providers.

Currently ranked 86th, Reliance is the most important non-public sector firm from India to be featured in Fortune’s Global 500 listing of World’s Largest Companies for 2024. The firm stands forty fifth within the Forbes Global 2000 rankings of ‘World’s Largest Public Companies’ for 2023, the best amongst Indian firms. Reliance has been recognised in Time’s listing of the 100 Most Influential Companies of 2024, marking the one Indian firm to have achieved this honour twice. Reliance is the top-ranked Indian firm and the one one within the high 100 on Forbes’ World’s Best Employers 2023 listing. Additionally, it’s featured amongst LinkedIn’s Top Companies 2023: The 25 Best Workplaces To Grow Your Career In India (http://ril.com).

About The Walt Disney Company

The Walt Disney Company, along with its subsidiaries, is a number one diversified worldwide household leisure and media enterprise that features three enterprise segments: Entertainment, Sports and Experiences. Disney is a Dow 30 firm and had an annual income of $88.9 billion in its fiscal 12 months 2023.

About Bodhi Tree Systems

Bodhi Tree Systems is a strategic investor in client know-how alternatives in Southeast Asia, with a selected deal with India. The entity is a platform of James Murdoch’s Lupa Systems and Uday Shankar and was established in 2021 to discover and spend money on Southeast Asia and the Middle East. In addition to media and schooling, Bodhi Tree expects to spend money on different client know-how sectors akin to healthcare that characterize important alternatives however endure from an absence of capital and innovation. Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, is an investor in Bodhi Tree Systems.