The stage is set for India to move into a single entity-dominant proposition in the broadcast media and entertainment arena. What with the Walt Disney Company and Reliance Industries Ltd (RIL) having reportedly signed a binding agreement to merge their respective subsidiaries Star India and Viacom18.
Per media reports, the merger announcement is expected any time this week.
The deal will have a significant impact on the Indian M&E space, as it will create a dominant media giant rather than the duopoly that was being envissaged before the collapse of the over two-year-long Sony-ZEE merger plans saga.
It was in December 2023 that both the companies had signed a non-binding term sheet in London to enter into merger discussions.
The current strategy reportedly involves establishing a subsidiary under RIL’s Viacom18 to facilitate the incorporation of Star India through a stock exchange arrangement.
In this arrangement, Reliance is expected to own 61 per cent of the merged entity, while Disney will have 33 per cent ownership and 6 per cent will be with Bodhi Tree Systems, majority owned by James Murdoch’s investment arm Lupa Systems and in which former Disney India head Uday Shankar has a minority stake.
The distribution of stakes among the parties could fluctuate based on the inclusion of Disney’s additional local assets at the time of finalising the deal, reports further state.
The timing of the merger announcement aligns with the upcoming Indian Premier League 2024, which kicks off March 22nd.
