Reliance and Disney finally complete transaction to form JV of top entertainment brands

Mukesh Ambani-led Reliance Industries Limited, entertainment giant Disney along with Viacom18 announced the merger of the media and JioCinema businesses of Viacom18 into Star India Private Limited following approvals from the NCLT Mumbai, Competition Commission of India, and other regulatory bodies. Reliance Industries Limited (RIL) has injected Rs 11,500 crore into the joint venture to support its expansion. As part of the agreement, the joint venture has issued shares to Viacom18 and RIL in exchange for assets and cash, respectively.

The JV will be one of the largest Media & Entertainment companies in India with pro forma combined revenue of approximately Rs 26,000 crore. Nita M. Ambani will be the Chairperson of the JV and Uday Shankar will be the Vice Chairperson, who will provide strategic guidance to the JV.

The joint venture (JV) houses top-notch and captivating media brands in India on both TV and digital channels. The collaboration of ‘Star’ and ‘Colors’ on TV, along with ‘JioCinema’ and ‘Hotstar’ online, offers a wide array of entertainment and sports content to viewers in India and around the world.

"The transaction values the JV at Rs 70,352 crore on a post-money basis, excluding synergies. At the closing of the transactions noted above, the JV is controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney," said the companies in a joint statement.

"The JV will be spearheaded by three CEOs who will lead the company into a new era of ambition and disruption. Kevin Vaz will head the entertainment organisation across platforms. Kiran Mani will take charge of the combined digital organisation. Sanjog Gupta will lead the combined sports organisation. Together, they will leverage their unique strengths to cultivate a bold, transformative vision that challenges the status quo and sets new standards in the industry," the companies added.