Disney and Reliance announce merger of their media operations in India
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New Delhi. Global media giant Walt Disney and industrialist Mukesh Ambani-led Reliance Industries on Wednesday announced the merger of their media operations in India. With this merger, a big media company worth Rs 70,000 crore will come into existence. Disney and Reliance will sign a binding agreement in this regard. After successful completion of the deal, the resulting company will be the largest in the Indian media and entertainment sector. It will have over 100 channels in multiple languages, two major OTT platforms and 75 crore viewers across the country. Under the deal, Viacom18’s media venture will be merged into Star India through a court-approved arrangement, the companies said in a joint statement.
The stake of Reliance and its subsidiaries in the combined entity will be 63.16 percent. On the other hand, Disney will hold the remaining 36.84 percent stake. Reliance has also agreed to invest around Rs 11,500 crore in the joint venture to expand its OTT business. Nita Ambani, wife of Reliance Industries Chairman Mukesh Ambani, will become the chairperson of the combined company, while Uday Shankar will be the vice chairperson. The statement said that after the completion of the merger, the joint venture will be controlled by RIL.
RIL will own 16.34 percent, Viacom18 will own 46.82 percent and Disney will own 36.84 percent in the combined entity. Additionally, Disney may also merge some additional media assets into the joint venture. However, the move will be subject to regulatory and third-party approvals. According to the statement, the joint venture will be one of the leading TV and digital streaming platforms for entertainment and sports content in India. The move will bring together popular media assets including entertainment (like Colors, StarPlus, StarGold) and sports (like Star Sports and Sports18). It will also include digital platforms like JioCinema and Hotstar.
The combined entity will have over 75 crore viewers across India and will also cater to the needs of the Indian diaspora across the world. The combined entity will be given exclusive rights to broadcast films and programs made under the Disney banner in India along with licensing of over 30,000 Disney content assets. Mukesh Ambani said that this is a historic agreement. This is the beginning of a new era in the Indian entertainment industry. He welcomed Disney as a major partner of the Reliance Group. “We have always respected Disney as the best media group globally and we are very excited about this strategic joint venture.”
Walt Disney Company CEO Bob Iger said India is the world’s most populous market and he is excited about the joint venture company. He said, Reliance has a deep understanding of the Indian market and consumers and together we will carve a place among the leading media companies of the country. We will be able to better serve consumers with a comprehensive portfolio of digital services, entertainment and sports content. The deal is subject to approvals from regulators, shareholders and other relevant parties. The deal is expected to be completed in the last quarter of 2024 or the first quarter of 2025.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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