Reliance-Disney Seal $8.5 Billion Deal to Create Media Giant

Mukesh Ambani-led Reliance Industries Ltd (RIL) and Walt Disney Company have successfully concluded their $8.5 billion merger deal, marking a transformative moment for India’s media and entertainment sector. The joint venture (JV), valued at ₹70,532 crore, combines the media assets of RIL’s Viacom18 and JioCinema with Disney’s Star India Private Limited (SIPL).

The completion of the transaction was announced on November 14, 2024, creating a media powerhouse that will redefine the Indian entertainment landscape. The JV will operate 120 TV channels, two leading streaming platforms i.e. JioCinema and Hotstar hold extensive sports broadcasting rights.

RIL will retain control with a 16.34% stake, while its subsidiary Viacom18 holds a majority 46.82% share. Disney owns the remaining 36.84%. Nita Ambani will chair the JV, with Uday Shankar serving as Vice Chairperson.

The newly formed divisions of the joint venture include Entertainment, which combines Reliance’s Colors TV channels and Disney’s Star network. Digital, which brings together the streaming platforms JioCinema and Hotstar and Sports, managing a portfolio of sports content and broadcasting rights.

Each division will be led by a CEO, including former Google executive Kiran Mani heading the digital unit, Kevin Vaz leading entertainment, and Sanjog Gupta spearheading sports.

The JV aims to deliver a diverse content portfolio across linear TV and digital platforms, catering to Indian and global audiences. “Our deep creative expertise, relationship with Disney, and unmatched understanding of the Indian consumer will ensure unparalleled content choices at affordable prices for Indian viewers. I am very excited about the JV's future and wish it all the success,” said Mukesh Ambani, RIL Chairman.

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Disney CEO Robert A. Iger echoed this sentiment, emphasizing the potential to expand Disney’s presence in the Indian market while delivering a good mix of entertainment and sports offerings.

The JV produces over 30,000 hours of TV content annually and boasts more than 50 million subscribers across JioCinema and Hotstar.

The transaction received regulatory clearances from the Competition Commission of India (CCI) and other international antitrust authorities in the EU, China, Turkey, South Korea, and Ukraine. It was also approved by the National Company Law Tribunal (NCLT) and India’s Ministry of Information and Broadcasting.

In a separate transaction, RIL acquired Paramount Global’s 13.01% stake in Viacom18 for ₹4,286 crore, consolidating its position as the majority stakeholder in the subsidiary.

There were earlier speculations about JioCinema and Disney+ Hotstar merging into a single streaming platform called JioHotstar. However, the official release does not confirm this. It states, “The combination of 'Star' and 'Colors' on the television side and 'JioCinema' and 'Hotstar' on the digital front will offer a wide range of entertainment and sports content to viewers in India and worldwide.”

In Conclusion

The Reliance-Disney merger marks a significant milestone in India’s media industry, heralding a new era of growth and innovation. By blending global expertise with a deep understanding of Indian consumers, the JV is poised to set new benchmarks in entertainment and sports broadcasting. With an eye on affordability and quality, this alliance will potentially enhance how millions of viewers consume content in India and beyond.