Reliance Industries Ltd (RIL) and The Walt Disney Company have formally sealed a groundbreaking joint venture, merging their media juggernauts Viacom18 and Star India. Announced on February 28, this strategic alliance is poised to shape India’s most expansive media conglomerate, spanning TV broadcasting, streaming, movies, and sports.
As per the agreement, RIL will infuse ₹11,500 crore ($1.4 billion) into the joint venture, resulting in a post-transaction valuation of ₹70,352 crore ($8.5 billion). Post-merger, RIL will wield majority control with a 16.34% stake, while Viacom18 and Disney will hold 46.82% and 36.84%, respectively.
Nita M. Ambani will assume the role of Chairperson for the joint venture, with Uday Shankar as Vice Chairperson, providing strategic direction. The partnership secures exclusive distribution rights for Disney films and access to over 30,000 Disney content assets, presenting a comprehensive entertainment offering to Indian consumers.
Mukesh D Ambani, Chairman and Managing Director of Reliance Industries, expressed his excitement, noting, “This landmark agreement heralds a new era in the Indian entertainment industry.” Disney CEO Bob Iger echoed this sentiment, underscoring the vast opportunities in India, the world’s most populous market.
Uday Shankar, Co-founder of Bodhi Tree Systems, emphasized the commitment to delivering exceptional value. The joint venture aspires to shape the future of entertainment in India, aligning with the vision of making Digital India a global exemplar, championed by the Hon’ble Prime Minister.
In response to the announcement, Reliance’s share price experienced a modest dip, settling at ₹2,915, yet maintaining a year-to-date gain of over 12%. The collaboration between Reliance and Disney is set to redefine India’s media landscape, offering a diverse portfolio of digital services and entertainment content to consumers nationwide.
