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Reliance Industries Limited (RIL), Viacom18 Media (Viacom18), and The Walt Disney Company announced on Thursday that they have completed the merger of Viacom18’s media and JioCinema businesses into Star India (SIPL), creating a mega joint venture valued at Rs 70,352 crore.
Photograph: Fred Prouser/Reuters
The new entity will be guided by three chief executive officers (CEOs), “who will lead the company into a new era of ambition and disruption”, according to a joint statement.
Kevin Vaz will lead the entertainment division across all platforms, Kiran Mani will head the combined digital division, and Sanjog Gupta will oversee the sports operations.
While Vaz and Mani come from Viacom18, Gupta brings experience from the Star TV Network.
At the top, Nita Ambani will serve as chairperson of the joint venture, with Uday Shankar taking on the role of vice chairperson.
The transaction values the joint venture at $8.5 billion, or an estimated Rs 70,352 crore, excluding synergies, in post-money terms, the joint statement said.
Upon completion, the venture is controlled by RIL, with ownership stakes divided as follows: 16.34 per cent by RIL, 46.82 per cent by Viacom18, and 36.84 per cent by Disney.
RIL is the majority shareholder in Viacom18.
As one of India’s largest media and entertainment firms, the joint venture boasts a combined pro formal revenue of approximately Rs 26,000 crore or roughly $3.1 billion (as of March 2024).
It shall operate over 100 television channels, delivering more than 30,000 hours of television content annually.
The digital platforms JioCinema and Hotstar serve a combined subscription base of over 50 million.
The venture also holds an extensive portfolio of sports rights, including cricket, football, and other major sports.
Mukesh Ambani, chairman and managing director, RIL, said: “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.”
Robert Iger, CEO of The Walt Disney Company, said: “By joining forces with Reliance, we are able to… deliver viewers an even more robust portfolio of entertainment, sports content, and digital services.”
In a separate transaction, RIL acquired Paramount Global’s entire 13.01 per cent stake in Viacom18 for Rs 4,286 crore, leaving Viacom18 with a new ownership structure: 70.49 per cent held by RIL, 13.54 per cent by Network18 Media and Investments, and 15.97 per cent by Bodhi Tree Systems, on a fully-diluted basis.
James (Murdoch, co-founder of Bodhi Tree Systems) and I are excited to be partners in this journey to disrupt the media and entertainment industry in India,” said Uday Shankar, co-founder, Bodhi Tree Systems in a statement.
He added that as media consumption continues to move to an integrated TV-digital ecosystem, the merger of Viacom18 and Star India offers a unique opportunity to reorient the industry to better serve diverse cohorts of consumers across the country.
The transaction received regulatory approval from the Competition Commission of India (CCI) in August, subject to certain voluntary modifications offered by the companies.
It has also secured clearances from antitrust authorities in the European Union, China, Turkey, South Korea, and Ukraine.
