In a groundbreaking move set to redefine the Indian entertainment industry, Reliance Industries Limited (RIL), Viacom 18 Media Private Limited, and The Walt Disney Company (Disney) have announced the formation of a joint venture (JV) that will amalgamate the operations of Viacom18 and Star India. This strategic collaboration aims to leverage the strengths of each entity to deliver unparalleled content experiences to audiences across India and beyond.
The agreement entails the merger of Viacom18’s media business into Star India Private Limited (SIPL) through a court-sanctioned scheme of arrangement. As part of the deal, RIL, led by chairman and managing director Mukesh D Ambani, has committed to investing ₹11,500 crore (approximately US$1.4 billion) into the joint venture at closing, reflecting a transaction valuation of ₹70,352 crore (US$8.5 billion) post-money, excluding synergies.
Under the terms of the agreement, the joint venture will be controlled by RIL, with ownership stakes as follows: 16.34% by RIL, 46.82% by Viacom18, and 36.84% by Disney. Disney also has the option to contribute additional media assets to the JV, pending regulatory and third-party approvals.
Mukesh D Ambani expressed enthusiasm about the collaboration, stating, “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation.”
Similarly, The Walt Disney Company CEO Bob Iger emphasized the significance of the Indian market, stating, “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company.”
Uday Shankar, co-founder of Bodhi Tree Systems, echoed these sentiments, highlighting the potential of the joint venture to shape the future of entertainment in India and accelerate the vision of making Digital India a global exemplar.
Nita M. Ambani will serve as the chairperson of the JV, with Uday Shankar appointed as vice chairperson to provide strategic guidance.
The joint venture will consolidate iconic media assets across entertainment and sports, including popular channels like Colors, StarPlus, and StarGOLD, as well as leading sports networks such as Star Sports and Sports18. With access to highly anticipated events via platforms like JioCinema and Hotstar, the JV is poised to reach over 750 million viewers in India and cater to the Indian diaspora worldwide.
By integrating Disney’s acclaimed films and shows with Viacom18’s renowned productions and sports offerings, the JV aims to provide a compelling digital-focused entertainment experience to audiences, along with exclusive rights to distribute Disney content in India.
The transaction, subject to regulatory and shareholder approvals, is expected to be completed in the last quarter of calendar year 2024 or the first quarter of calendar year 2025.
Goldman Sachs, Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co, Shardul Amarchand Mangaldas & Co, Raine Group, Cleary Gottlieb, Covington & Burling, AZB, Ernst & Young, HSBC India, and BDO are among the key financial and legal advisors facilitating the transaction.
This joint venture marks a significant milestone in the Indian entertainment landscape, promising to reshape the industry and offer consumers a diverse array of high-quality content across various platforms.
