Reliance and Disney Join Forces to Create India’s Largest Media Empire

Reliance Industries Limited (RIL) and The Walt Disney Company (Disney) have announced a historic deal that will merge their media operations in India, creating a giant entertainment conglomerate with a valuation of Rs 70,352 crore (~US$ 8.5 billion). The joint venture (JV) will combine the businesses of Viacom18 and Star India, which include popular TV channels, digital streaming platforms, movies and sports. The JV will be controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney. Disney may also contribute certain additional media assets to the JV, subject to regulatory and third-party approvals.

The JV will be chaired by Mrs. Nita M. Ambani, with Mr. Uday Shankar as Vice Chairperson providing strategic guidance. The JV will have over 750 million viewers across India and will also cater to the Indian diaspora across the world. The JV will seek to lead the digital transformation of the media and entertainment industry in India and offer consumers high-quality and comprehensive content offerings anytime and anywhere.

The merger of Viacom18 and Star India will bring together iconic media assets across entertainment and sports, including access to highly anticipated events across television and digital platforms through JioCinema and Hotstar. Some of the well-known brands that will be part of the JV are Colors, StarPlus, StarGOLD, Star Sports and Sports18. The JV will also have a strong portfolio of regional and niche channels, catering to diverse tastes and preferences of the Indian audience.

The JV will also benefit from the addition of Disney’s acclaimed films and shows to Viacom18’s renowned productions and sports offerings. The JV will offer a compelling, accessible and novel digital-focused entertainment experience to people in India and the Indian diaspora globally. The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a license to more than 30,000 Disney content assets, providing a full suite of entertainment options for the Indian consumer.

The deal is expected to create significant value for all stakeholders, as the JV will leverage the synergies of scale, reach, technology and content. The JV will also be able to invest more in original and local content, as well as in enhancing the user experience and engagement. The JV will also be able to tap into new revenue streams, such as advertising, subscription, licensing and merchandising.

The deal is subject to customary closing conditions and regulatory approvals. The transaction is expected to close in the second half of 2024.

Speaking about the JV, Mr. Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, said, “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We are delighted to partner with Disney, the global leader in media and entertainment, to create a world-class platform that will entertain and inspire millions of Indians. This JV will also contribute to the growth of the Indian economy, by creating new jobs, fostering innovation and enhancing the quality of life of our people.”

Mr. Bob Chapek, Chief Executive Officer of The Walt Disney Company, said, “We are excited to join forces with Reliance, India’s most admired and respected company, to create a leading media and entertainment company in one of the world’s most dynamic and fastest-growing markets. This JV will combine the best of Disney’s storytelling and brands with the unparalleled reach and distribution of Reliance’s platforms. Together, we will offer Indian consumers more choice, quality and value than ever before.”

Mr. Sudhanshu Vats, Managing Director of Viacom18, said, “We are proud to be part of this historic deal that will transform the Indian media landscape. We have built a strong and diversified media business over the years, with a loyal and engaged fan base across genres and languages. We look forward to working with Disney and Reliance to further enhance our offerings and delight our customers with world-class content and experiences.”

Mr. K Madhavan, President of Star India, said, “We are thrilled to be part of this JV that will create a new benchmark in the Indian media industry. We have a long and successful track record of delivering high-quality and innovative content across genres and platforms. We are confident that by joining hands with Disney and Reliance, we will be able to take our content and services to the next level and reach out to a wider and more diverse audience.”