Reliance Industries, Viacom18, and Disney form media JV in India

In a landmark development for the Indian media and entertainment industry, Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18), and The Walt Disney Company (NYSE:DIS) (“Disney”) have announced the formation of a joint venture (JV) that marks a significant step towards consolidating their businesses. This ambitious move will see Viacom18’s media operations merge into Star India Private Limited (SIPL) through a court-approved scheme of arrangement, creating a powerhouse in the television and digital streaming landscape.

The deal, valued at ₹70,352 crore (~US$ 8.5 billion) on a post-money basis excluding synergies, sees RIL injecting a hefty ₹11,500 crore (~US$ 1.4 billion) into the JV to fuel its growth strategy. Ownership of the newly formed entity will be divided among RIL, Viacom18, and Disney, with RIL controlling a 16.34% stake, Viacom18 holding 46.82%, and Disney owning 36.84%. Additionally, Disney may augment the JV with certain media assets, pending regulatory and third-party approvals.

Leadership roles within the JV have been announced, with Mrs. Nita M. Ambani taking the helm as Chairperson and Mr. Uday Shankar serving as Vice Chairperson, bringing strategic guidance and vision to the venture. This collaboration aims to revolutionize India’s media and entertainment sector by leveraging iconic assets across entertainment and sports, including channels like Colors, StarPlus, StarGOLD, Star Sports, and Sports18. The JV promises to offer over 750 million viewers in India and the Indian diaspora access to a vast array of highly anticipated events and content across television and digital platforms, notably through JioCinema and Hotstar.

Strategically positioned to lead the digital transformation in the media and entertainment industry, the JV aspires to provide high-quality, comprehensive content offerings that cater to consumers’ needs anytime, anywhere. By combining the media expertise and diverse content libraries of Viacom18 and Star India with Disney’s acclaimed films and shows, the venture aims to deliver an unparalleled, innovative, and affordable digital entertainment experience.

The JV also secures exclusive rights to distribute Disney films and productions in India, enhancing its content arsenal with access to more than 30,000 Disney assets. This strategic alliance is celebrated by leaders of the participating companies, including Mr. Mukesh D Ambani, Chairman & Managing Director of RIL, and Mr. Bob Iger, CEO of The Walt Disney Company, both of whom have expressed their enthusiasm and vision for the venture’s potential to reshape the entertainment landscape in India.

Expected to be finalized between the last quarter of Calendar Year 2024 and the first quarter of Calendar Year 2025, the transaction is subject to regulatory, shareholder, and customary approvals. Financial and legal advisory roles have been filled by prestigious firms such as Goldman Sachs, Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co, and Shardul Amarchand Mangaldas & Co for RIL and Viacom18, and The Raine Group, Citi, Cleary Gottlieb, Covington & Burling, and AZB for Disney, ensuring a robust framework for the JV’s successful launch.