Reliance Industries and Disney Form Joint Venture with RIL at 16.34%, Viacom18 at 46.82%, and Disney at 36.84%

Disney and Reliance officially announce an $8.5 billion strategic joint venture, merging Viacom18 and Star India businesses. Reliance’s investment of approximately $1.4 billion into the JV comes with exclusive distribution rights for Disney films and productions in India.

Reliance Industries Limited (RIL) and Disney have signed binding agreements to establish a joint venture.

The joint venture will be granted exclusive distribution rights for Disney films and productions in India.

Disney will provide content licenses to the joint venture and may contribute additional media assets.

This collaboration involves combining the businesses of Viacom18 and Star India within the joint venture.

Noteworthy Disney channels in India, including Disney Channel, Disney Junior, and Hungama TV, will be part of the joint venture.

Hotstar, the streaming service owned by Star India and now under The Walt Disney Company, will also be integrated into this collaboration.

Nita M Ambani is appointed as the chairperson of the JV.

Shareholding breakdown: RIL owns 16.34%, Viacom18 holds 46.82%, and Disney has 36.84%.

Reliance commits to investing ₹11,500 crore in the joint venture.

Udya Shankar is designated as the vice chairperson of the Disney JV.

Goldman Sachs acts as the financial and valuation advisor in the transaction.

Ernst & Young provides an independent valuation for RIL and Viacom18.

HSBC India serves as a financial advisor and offers a fairness opinion to Viacom18.

Transaction completion is expected in either the last quarter of 2024 or the first quarter of 2025.

The joint venture is anticipated to reach over 750 million viewers across India.

Raine Group holds the position of the lead financial advisor to Disney.

Citi acts as a financial advisor to Disney in the transaction.

Disney may contribute certain additional media assets to the joint venture.

Update

India’s antitrust authority has posed approximately 100 questions to Reliance Industries and Walt Disney regarding their $8.5 billion merger of media assets in India, as per Reuters. The queries, which include inquiries about sports rights, reflect a deepening scrutiny of the deal. Announced in February, the merger is set to form India’s largest entertainment conglomerate, encompassing 120 TV channels and two streaming services.

Update

Reliance Industries and Disney have proposed selling some of their TV channels to secure approval from India’s antitrust authorities for their $8.5 billion media merger, according to sources.

Additionally, Reliance and Disney have informed the antitrust body that cricket rights cannot be sold.

The review of Disney and Reliance’s potential market power in cricket rights is still ongoing, sources added.

Update

Exclusive: Disney and Reliance Propose New Concessions to Indian Antitrust Authority for $8.5 Billion Media Merger Approval – Sources

Exclusive: Disney and Reliance Refuse to Sell Cricket Broadcast Rights but Agree to Lower Ad Rates – Sources

Update

The Competition Commission of India (CCI) has granted approval for Reliance Industries Ltd’s Rs 70,350-crore merger with Disney’s Indian media assets.

This decision, which includes certain voluntary modifications, clears the way for the formation of a major media conglomerate.

The approval comes just ahead of Reliance Industries’ 47th Annual General Meeting on August 29. The merger is anticipated to be finalized either in the last quarter of 2024 or the first quarter of 2025.

Nita Ambani is set to take on the role of Chairperson of the merged entity, with former Walt Disney executive Uday Shankar joining as Vice Chairperson.

Update November 14, 2024

Reliance Industries, Viacom18, and Disney have announced the successful completion of the merger of Viacom18’s media and JioCinema businesses with Star India Private Limited, following approvals from the NCLT Mumbai, the Competition Commission of India, and other regulatory bodies. This merger values the joint venture at Rs 70,352 crore ($8.5 billion) on a post-money basis, excluding synergies. Reliance Industries holds 16.34% of the JV, Viacom18 owns 46.82%, and Disney holds 36.84%. To drive the new venture forward, three CEOs will take charge: Kevin Vaz will lead the entertainment division, Kiran Mani will oversee the combined digital business, and Sanjog Gupta will lead the merged sports division.

Reliance Industries and Disney have completed a transaction to form a joint venture that will bring together some of the most iconic and engaging entertainment brands in India.

This joint venture is set to lead the transformation of India’s digital streaming ecosystem while expanding the linear TV space, particularly in entertainment and sports. Reliance has invested ₹11,500 crore in growth capital for the venture.

Reliance will operate and consolidate the joint venture, with Mrs. Nita M. Ambani serving as the chairperson.