SUMMARY
- Govt. has given nod to the transfer of licenses for non-news and current affairs TV channels from Viacom18 to Star India.
- RIL’s Viacom18 would merge with Star India to form India’s largest television and digital streaming company.
- Nita Ambani will take up the position of Chairperson of the merged entity.
Reliance Industries Limited (RIL) has announced that the Ministry of Information and Broadcasting, Government of India, has given the green light to the transfer of licenses for non-news and current affairs TV channels from Viacom18 Media Private Limited to Star India Private Limited, subject to certain conditions set by the Competition Commission of India (CCI).
This move is a significant step in the strategic partnership between Reliance Industries Ltd and Disney. The company further mentioned that the government’s approval was given on September 27, 2024, following a media announcement titled “Reliance and Disney Announce Strategic Joint Venture to Bring Together the Most Compelling and Engaging Entertainment Brands in India,” first made on February 28, 2024. It also mentioned that this decision follows previous disclosures by RIL on August 28, 2024, and August 30, 2024.
RIL first revealed on February 28, 2024, that Viacom18, a subsidiary of the company, would merge with Star India, Disney’s Indian division, to form India’s largest television and digital streaming company.
The Competition Commission of India approved the merger of Reliance Industries and Disney’s Indian media assets for a whopping Rs 70,350 crore ($8.5 billion) on August 28, 2024. The Mumbai bench of the National Company Law Tribunal (NCLT) gave the nod to the Viacom18-Star India deal on August 30.
Under the terms of the deal, Viacom18’s media operations will be integrated with Star India Ltd through a court-approved scheme of arrangement. This joint venture, valued at Rs 70,350 crore ($8.5 billion) on a post-money basis, will see Reliance Industries contributing Rs 11,500 crore ($1.4 billion) into the venture to support its growth strategy.
The new board will consist of 10 members, with RIL nominating five, Disney nominating three, and two independent directors. The merger is expected to be finalized in the fourth quarter of CY 2024 or the first quarter of 2025.
RIL Chairman Mukesh Ambani called the deal “beginning of a new era in India’s entertainment industry” at the 47th annual general meeting of Reliance Industries Ltd on August 29.
He added, “We are combining content creation with digital streaming…our digital-first approach will deliver unparalleled content at affordable prices.”
Nita Ambani will take up the position of Chairperson of the merged entity, with former Walt Disney executive Uday Shankar joining as Vice Chairperson.
The ownership structure of the new entity will see RIL holding 16.34%, Viacom18 with 46.82%, and Disney at 36.84%, with RIL maintaining control under the terms of the merger.
The Reliance-Disney merger will challenge Sony, Netflix, Amazon, with a combined portfolio of 120 TV channels and two streaming services.
In the earlier press statement, both companies mentioned that the joint venture aims to become a leading force in television and digital streaming, having a combined viewership of over 750 million across India and the global Indian diaspora. With a portfolio that includes iconic brands such as Colors, StarPlus, and Hotstar, the venture is set to offer a wide variety of entertainment and sports content to consumers.
