Reliance, Disney complete $8.5B merger to form biggest media entity
What's the story
Reliance Industries and Walt Disney Company have completed their historic merger in India's media space, creating an entertainment behemoth worth $8.5 billion. First proposed in February, the deal now brings Disney's Star India under Viacom18, a Reliance-controlled company. The joint venture will dominate around 85% of India's streaming market and nearly half of the country's television viewership, industry analysts said.
Venture leadership
Reliance to lead joint venture after $1.4B investment
Reliance, headed by Asia's richest man Mukesh Ambani, will lead the joint venture after a new capital infusion of $1.4 billion. The conglomerate and its subsidiary Viacom18 will hold a 63.16% majority stake in the venture, while Disney will hold 36.84%. The merger creates India's largest media group with an annual revenue of $3.1 billion, combining streaming services JioCinema and Hotstar and over 100 TV channels.
Content production
Joint venture to produce 30,000 hours of content annually
With over 50 million streaming subscribers, the joint venture plans to produce 30,000 hours of television content every year. "With the formation of this JV, the Indian media and entertainment industry is entering a transformational era," Ambani said. He added he was excited about the future of the joint venture and its ability to provide unmatched content choices at affordable prices for Indian viewers.
Media rights
Joint venture secures control over India's most valuable media rights
The joint venture brings under one roof control of some of India's most valuable media rights, including cricket properties like the Indian Premier League (IPL), ICC tournaments, and domestic cricket. It also includes global sports content like FIFA World Cup and Premier League. Nita Ambani, Mukesh Ambani's wife, will chair the venture with Uday Shankar as vice-chair. Kevin Vaz will head entertainment, Kiran Mani digital ops, and Sanjog Gupta sports content.
CEO remarks
Disney CEO comments on expanding presence in India
Commenting on the merger, Disney CEO Robert Iger said that by joining forces with Reliance, they can expand their presence in this important media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services. The deal has received regulatory approvals from competition authorities in India, the EU, China among other jurisdictions.