In a landmark development for the Indian media and entertainment (M&E) sector, the merger between Viacom18 and Star India, backed by Reliance Industries Limited (RIL) and The Walt Disney Company, has officially concluded. This merger creates a joint venture valued at over ₹70,000 crore, positioning it as the largest M&E company in India.
Overview of the Merger
The agreement to merge Viacom18’s TV and digital assets with Star India was signed in February 2024. The newly formed entity is expected to generate an estimated annual revenue of ₹26,000 crore, leveraging the strengths of both Reliance and Disney to provide a diverse array of content across television and digital platforms.
Key Highlights of the Merger
- Valuation: The joint venture is valued at approximately ₹70,352 crore ($8.5 billion), marking a significant consolidation in the Indian media landscape.
- Content Production: The JV operates over 100 television channels and produces more than 30,000 hours of TV entertainment content annually.
- OTT Platforms: It combines the subscription bases of JioCinema and Hotstar, totaling over 50 million subscribers, positioning itself to compete with international giants like Amazon Prime Video and Netflix.
- Leadership Structure: Nita Ambani will serve as Chairperson, while Uday Shankar will take on the role of Vice Chairperson. The operational leadership will be shared among three CEOs: Kevin Vaz (Entertainment), Kiran Mani (Digital), and Sanjog Gupta (Sports).
- Strategic Partnerships: RIL has further strengthened its position by acquiring a 13.01% stake in Paramount Global, enhancing its global entertainment footprint.
Regulatory Approvals Secured
The merger has successfully navigated through mandatory regulatory clearances from the National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI). The CCI approved the transaction on August 27, 2024, with certain voluntary modifications proposed by the parties involved.
A New Era for Indian Entertainment
This joint venture is poised to transform the Indian media landscape by offering a wide range of entertainment options, including movies, TV shows, and sports content at competitive prices.
“Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer, will ensure unparalleled content choices at affordable prices for Indian viewers,” said Mukesh Ambani, Chairman of RIL.
Robert A. Iger, CEO of The Walt Disney Company, echoed this sentiment, stating that this partnership allows them to expand their presence in a vital media market while delivering an extensive portfolio of entertainment and sports content.
Conclusion
The merger between Reliance’s Viacom18 and Disney’s Star India marks a significant milestone in India’s media industry. By combining resources and expertise, this new entity is set to redefine how content is produced and consumed in India, catering to an ever-growing audience eager for diverse entertainment options.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. Readers are encouraged to conduct their own research before making any decisions related to investments or business partnerships.
