RIL-Disney Deal: Viacom18 and Star India Merge

Reliance Industries Limited (RIL) and Walt Disney have announced a mega-merger of their media businesses in India, creating the country’s largest media conglomerate with a valuation of $8.5 billion. The deal will bring together 120 TV channels, two OTT platforms, movies and sports under one roof. Nita Ambani will be the chairperson of the merged entity, while Uday Shankar will be the vice-chairperson.

The merger of Viacom18 and Star India is a landmark deal in the Indian media industry, which has been witnessing intense competition and consolidation in recent years. The deal will give RIL a stronger foothold in the lucrative entertainment sector, while Disney will benefit from Reliance’s distribution network and digital reach.

The deal values the joint venture at Rs 70,352 crore ($8.5 billion) on a post-money basis, according to a joint statement by Reliance and Disney. Reliance will infuse $1.4 billion (Rs 11,500 crore) in the merged company to finance its growth plans. Reliance, along with Viacom18, will own 63% in the merged entity, while Disney will hold the remaining 37%.

The merged entity will have over 750 million viewers across the country and will also cater to the Indian diaspora. It will have a diverse portfolio of content across genres, languages and platforms, including popular channels like Colors, Star Plus, MTV, National Geographic, Hotstar and Voot. It will also have exclusive rights to stream IPL cricket matches and HBO shows in India.

Nita Ambani, wife of Reliance chairman Mukesh Ambani, will lead the board of the merged company, while Uday Shankar, co-founder of Bodhi Tree Systems and former chairman of Star India, will be its vice-chairperson. The management team and the operational structure of the merged entity will be announced in due course.

The deal is subject to regulatory approvals and is expected to close by mid-2024.

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