Disney Star and Viacom18 finalize merger, ushering in a new era of entertainment

Reliance Industries Limited (RIL), Viacom18 Media Private Limited, and The Walt Disney Company have announced the successful completion of a merger that unites Viacom18’s media and JioCinema divisions with Star India Private Limited (SIPL). This merger has received all necessary regulatory approvals, including from the National Company Law Tribunal (NCLT) in Mumbai and the Competition Commission of India (CCI). RIL has committed an investment of Rs 11,500 crore to the joint venture, which is valued at Rs 70,352 crore on a post-money basis.

Upon the conclusion of the transactions outlined above, the joint venture (JV) is under the control of Reliance Industries Limited (RIL) and is owned as follows: 16.34% by RIL, 46.82% by Viacom18, and 36.84% by Disney. Mrs. Nita M. Ambani will serve as the Chairperson of the Joint Venture, while Mr. Uday Shankar will take on the role of Vice Chairperson, offering strategic guidance to the organization.

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. I am very excited about the JV’s future and wish it all the success.

said Mr. Mukesh D Ambani, Chairman & Managing Director of Reliance
Industries Limited

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, 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.

said Mr. Robert A. Iger, Chief Executive Officer, The Walt Disney Company

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 deliver 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.

said Mr. Uday Shankar, Co-Founder of Bodhi Tree Systems

The Competition Commission of India (“CCI”) approved the transaction on 27th August 2024, subject to the compliance with certain voluntary modifications offered by the parties. Apart from the CCI, the transaction has been approved by anti-trust authorities in the EU, China, Turkey, South Korea and Ukraine.

The joint venture encompasses some of the most recognized and captivating media brands in India, spanning both television and digital platforms. By merging the strengths of ‘Star’ and ‘Colors’ in the television landscape with ‘JioCinema’ and ‘Hotstar’ in the digital realm, this collaboration will offer viewers in India and around the world an expansive array of entertainment and sports content. This strategic alliance is set to enhance the viewing experience with diverse choices that cater to a wide range of preferences.

Kevin Vaz will oversee the entertainment division across all platforms, while Kiran Mani will assume leadership of the consolidated digital organization. Sanjog Gupta will head the integrated sports organization. Together, these three Chief Executive Officers will guide the joint venture’s next phase of growth. In a separate transaction, RIL has bought out Paramount Global’s entire stake of 13.01% in Viacom18 for Rs 4,286 crore. As a result, Viacom18 is owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd. and 15.97% by Bodhi Tree Systems.