Reliance and Disney announce strategic joint venture

Reliance Industries Limited, Viacom 18 Media Private Limited, and The Walt Disney Company have announced the strategic joint venture that will combine the businesses of Viacom18 and Star India. The media undertaking of Viacom18 will be merged into Star India Private Limited (SIPL) through a court-approved scheme of arrangement. Nita M. Ambani will be the chairperson of the joint venture, while Mr. Uday Shankar will be the Vice Chairperson.

Furthermore, Reliance will invest Rs. 11,500 crore (around USD 1.4 billion) in the joint venture for its growth strategy. The joint venture assigns a value of Rs. 70,352 crore (around USD 8.5 billion) on a post-money basis. Post completion of the joint venture, Reliance Industries Limited (RIL) will hold 16.34 percent, while Viacom18 and Disney will hold 46.82 percent and 36.84 percent, respectively.

“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,” said Mukesh D Ambani, Chairman & Managing Director of Reliance Industries.

Bob Iger, CEO of The Walt Disney Company, said, “India is the world’s most populous market, and we are excited for the opportunities that 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.”

Uday Shankar, Co-founder of Bodhi Tree Systems, said, “We are privileged to be enhancing our relationship with Reliance to now also include Disney, a global leader in media & entertainment. All of us are committed to delivering exceptional value to our audiences, advertisers, and partners. This joint venture is poised to shape the future of entertainment in India and accelerate the Hon’ble Prime Minister’s vision of making Digital India a global exemplar.”

The joint venture is anticipated to have over 750 million viewers across India. Additionally, the joint venture will have exclusive distribution rights for Disney films and productions in India, with access to a vast library of over 30,000 Disney content assets that will offer a range of entertainment choices for consumers in India.

The joint venture is subject to regulatory, shareholder, and other customary approvals. However, it is expected to be completed in the last quarter of 2024 or the first quarter of 2025.