Reliance Industries has completed the merger of its media assets with Walt Disney's India division, forming a new joint venture valued at Rs 70,352 crore. According to a joint release, Nita Ambani will chair the joint venture, in which Reliance Industries has invested Rs 11,500 crore (USD 1.4 billion) for growth.
"The transaction values the JV at Rs 70,352 crore (USD 8.5 billion) on a post-money basis, excluding synergies," according to the announcement. RIL will control the aforementioned JV after the deals close.
Reliance Industries owns 16.34% of the joint venture, while Viacom18, its step-down unit, owns 46.82% and Disney owns the remaining 36.84. "Nita M. Ambani will be the Chairperson of the JV, with Uday Shankar as Vice Chairperson providing strategic guidance to the JV," according to the report.
Viacom 18 Media and The Walt Disney Company have already secured the requisite permissions from authorities such as CCI and NCLT for the merger of Viacom18's media and JioCinema businesses with Star India. The JV would be one of India's largest media and entertainment enterprises, with a pro forma combined revenue of around Rs 26,000 crore (USD 3.1 billion) for the fiscal year ending March 2024.
The joint venture operates over 100 television channels and creates more than 30,000 hours of TV entertainment material each year. The JioCinema and Hotstar digital services have more than 50 million subscribers combined. The JV owns a portfolio of sports rights in cricket, football, and other sports.
RIL Chairman & Managing Director Mukesh Ambani commented on the development, saying, "With the formation of this JV, the Indian media and entertainment industry is entering a transformational era."
"Our extensive creative experience and partnership with Disney, along with our unrivaled grasp of the Indian market, will offer unprecedented entertainment options at accessible pricing for Indian viewers. I am very excited about the JV's future and wish it all the best," he stated.
