Reliance Industries Limited, Viacom18 and Disney announced on Thursday, November 14, that the merger of the media and JioCinema businesses of Viacom18 into Star India Private Limited has become effective.
The merger completion follows on from the approval by the NCLT Mumbai, Competition Commission of India and other regulatory authorities.
RIL has invested Rs 11,500 crore ($1.36 billion) into the JV for its growth. The JV has allotted shares to Viacom18 and RIL as consideration for the assets and cash, respectively.
“The transaction values the JV at Rs 70,352 crore ($8.33bn) on a post-money basis, excluding synergies. At the closing of the transactions noted above, the JV is controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney,” the companies declared in a joint statement.
In a separate transaction, RIL has bought out Paramount Global’s entire stake of 13.01% in Viacom18 for Rs 4,286 crore ($507.5 million). As a result, Viacom18 is owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd. and 15.97% by Bodhi Tree Systems (jointly owned by James Murdoch and Uday Shankar), on a fully-diluted basis.
“The JV will be spearheaded by three CEOs who will lead the company into a new era of ambition and disruption. Kevin Vaz will head the entertainment organisation across platforms. Kiran Mani will take charge of the combined digital organisation. Sanjog Gupta will lead the combined sports organisation. Together, they will leverage their unique strengths to cultivate a bold, transformative vision that challenges the status quo and sets new standards in the industry,” the companies added.
Nita Ambani will be the chairperson of the JV, with Uday Shankar as vice chairperson “providing strategic guidance to the JV”.
Mukesh Ambani, chairman & managing director of Reliance Industries Limited, said: “With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer, will ensure unparalleled content choices at affordable prices for Indian viewers. I am very excited about the JV’s future and wish it all the success.”
“The formation of the JV will herald a new era in India’s entertainment industry for consumers. This unique joint venture of Reliance and Disney brings together the companies’ content creation and curation prowess, world-class digital streaming capabilities along with a digital first approach that will help the JV deliver unparallelled content choices at affordable prices to Indian viewers and the Indian diaspora globally,” the companies further stated.
The JV will be one of the largest media and etertainment companies in India with combined revenue of approximately Rs 26,000 crore ($3.1bn) for the fiscal year ended in March 2024. The JV operates over 100 TV channels and produces 30,000+ hours of TV entertainment content annually. The JioCinema and Hotstar digital platforms have an aggregate subscription base of over 50 million. The JV holds a portfolio of sports rights across cricket, football and other sports.
