Reliance, Disney To Merge Indian Media Businesses To Create Rs 70,352-Crore JV

Reliance Industries Ltd. will merge its television and streaming business with Walt Disney Co.'s India unit to create the country's largest media company valued at Rs 70,352 crore.

The two companies have signed a binding, definitive agreement to form a joint venture that will combine the digital streaming and television assets of Viacom18 and Star India, RIL said in a statement on Wednesday.

As part of the transaction, the media undertaking of Viacom18 will be merged into Disney-owned Star India Pvt. through a court-approved scheme of arrangement. Reliance will invest Rs 11,500 crore in the venture to fund growth.

The Mukesh Ambani-promoted company will control the joint venture via a 16.34% direct stake and 46.82% held through Viacom 18. Disney will own 36.84%.

Nita Ambani will be the chairperson of the merged entity, while former Star India chief Uday Shankar will serve as vice chairperson.

Disney may also contribute certain additional media assets to the JV, subject to regulatory and third-party approvals, the company said.

The deal is expected to be completed in the quarter ended December or March after receiving regulatory, shareholder and other customary approvals.

The deal marks one of the biggest consolidations in India's media sector, even as a $10 billion merger between Sony Group's India unit and Zee Entertainment Enterprises Ltd. has run into trouble.

The Reliance-Disney India combination will bring together 120 television channels and two over-the-top apps—Hotstar and JioCinema. It will allow the two firms to monetise IPL broadcast and streaming rights bought at nearly $3 billion each for the 2023–2027 cycle.