On Thursday, a significant development unfolded in the media landscape as Reliance Industries Limited finalized its merger with Walt Disney's operations in India. This merger has brought together Viacom 18 Media Private Limited, Reliance Industries, and The Walt Disney Company to form an extensive joint venture, following necessary approvals from the National Company Law Tribunal in Mumbai, the Competition Commission of India, and other regulatory entities. The joint venture is valued at an impressive Rs. 70,352 crores on a post-money basis.
The completion of this merger marks a pivotal moment as Reliance confirmed the successful integration with Disney, having secured agreements from key regulatory bodies. This follows the initiation of a strategic partnership aimed at establishing the joint venture in February. Reliance Industries has committed an investment of Rs. 11,500 crores into this new entity, acquiring a 16.34 percent stake. Notably, Viacom 18, a subsidiary of Reliance and a joint venture partner, holds a more substantial 46.82 percent stake, while Disney retains the remaining 36.84 percent.
The joint venture seeks to synergize television channels by merging Star and Colors networks, while simultaneously integrating JioCinema and Hotstar within the digital realm. Nita Ambani has been appointed as the Chairperson, steering the entity towards its strategic goals.
In terms of scale, the joint venture boasts a remarkable combined revenue of about Rs. 26,000 crores for the financial year concluding in March 2024. Its operational reach includes over 100 television channels, producing upwards of 30,000 hours of content each year.
Addressing the digital landscape, Reliance reports that JioCinema and Disney+ Hotstar have amassed a total of over 50 million subscriptions, although this figure does not factor in overlapping users subscribed to both services. Furthermore, the joint venture has acquired digital sports rights encompassing cricket, football, and other athletic events.
Following the merger, Mukesh Ambani, Chairman and Managing Director of Reliance Industries, emphasized the strengths of their creative capabilities and established relationship with Disney, asserting that this collaboration will enhance content offerings at competitive prices for audiences in India.