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.