Reliance Industries Limited (RIL) has announced that the Ministry of Information and Broadcasting, Government of India, has approved the transfer of licenses for non-news and current affairs television channels from Viacom18 Media Private Limited to Star India Private Limited subject to conditions laid by Competition Commission of India (CCI).
This decision forms part of the strategic joint venture between Industries Ltd and Disney. Reliance Industries Ltd further stated that the government's approval was granted via an order dated September 27, 2024, following a media release titled "Reliance and Disney Announce Strategic Joint Venture to Bring Together the Most Compelling and Engaging Entertainment Brands in India," first issued on February 28, 2024. It also said this decision builds on previous disclosures made by RIL on August 28, 2024, and August 30, 2024.
Reliance Industries initially disclosed on February 28, 2024, that Viacom18, a subsidiary of the company, would merge with Star India, Disney’s Indian unit, to create India’s largest television and digital streaming entity.
India's competition regulator CCI approved the Rs 70,350-crore merger between Reliance Industries and Disney's Indian media assets on August 28, 2024, with the Mumbai bench of the National Company Law Tribunal (NCLT) granting clearance for the Viacom18-Star India deal on August 30.
Reliance-Disney JV to challenge Sony, Netflix, and Amazon
Under the terms of the agreement Viacom18’s media operations will be merged with Star India Ltd through a court-approved scheme of arrangement. The joint venture, valued at Rs 70,350 crore ($8.5 billion) on a post-money basis, will see Reliance Industries injecting Rs 11,500 crore ($1.4 billion) into the venture to support its growth strategy.
The Reliance-Disney combine will compete with Sony, Netflix and Amazon, with 120 TV channels and two streaming services.
The new board will have 10 members, with RIL nominating five, Disney three, and two independent directors. The merger is expected to be completed in the last quarter of 2024 or the first quarter of 2025.
Nita Ambani will assume the role of Chairperson of the merged entity, with former Walt Disney executive Uday Shankar, joining as Vice Chairperson.
The joint venture's ownership structure will consist of RIL holding 16.34 percent, Viacom18 with 46.82 percent, and Disney at 36.84 percent, with RIL retaining control under the merger terms.
In the press statement earlier, both companies said that the joint venture aims to become a dominant force in television and digital streaming, boasting a combined viewership of over 750 million across India and the global Indian diaspora. With a portfolio including iconic brands such as Colors, StarPlus, and Hotstar, the venture is poised to offer consumers a diverse range of entertainment and sports content, the statement said.
Mukesh Ambani declares Disney deal as "new era" for India's entertainment industry
At the 47th annual general meeting of Reliance Industries Ltd on August 29, RIL chairman Mukesh Ambani said the deal with Disney marks the "beginning of a new era in India's entertainment industry".
"Let us now talk about our partnership with Disney. This marks the beginning of a new era in India's entertainment industry. We are combining content creation with digital streaming," he said at the RIL AGM.
"We will provide world-class digital entertainment across the spectrum," Ambani said, adding that "We will cater to every consumer's taste. We are excited about this partnership."
"We are combining content creation with digital streaming," Ambani said, adding "our digital-first approach will deliver unparalleled content at affordable prices".
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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