Reliance Industries Limited (RIL), Viacom18, and Walt Disney have entered into definitive agreements to establish a joint venture by merging Viacom18's media operations into Star India through a court-approved scheme of arrangement.
As part of this collaboration, RIL, led by Mukesh Ambani, has committed to investing Rs 11,500 crore ($1.4 billion) in the joint venture, which is valued at Rs 70,352 crore ($8.5 billion) post-money, excluding synergies.
The ownership structure of the joint venture will be as follows: RIL, Viacom18, and Disney will own 16.34%, 46.82%, and 36.84%, respectively. Given RIL's majority stake in Viacom18, it will control the joint venture. Nita Ambani is set to serve as the Chairperson, while Uday Shankar will provide strategic guidance as the Vice Chairperson.
The joint venture is poised to become a prominent TV and digital streaming platform for entertainment and sports content in India, combining iconic media assets across entertainment and sports. This collaboration will offer access to highly anticipated events through JioCinema and Hotstar on television and digital platforms.
With a viewer base exceeding 750 million in India and catering to the global Indian diaspora, the joint venture is positioned as a major player in the industry. Pending regulatory and third-party approvals, Disney may contribute additional media assets to the joint venture, which will acquire exclusive distribution rights for Disney films and productions in India, along with a license for over 30,000 Disney content assets.
