Mukesh Ambani's Reliance, Viacom18, and Disney complete merger to create a Rs 70,352 crore JV

Mukesh Ambani-led Reliance Industries Limited (RIL), Viacom18, and The Walt Disney Company announced that the merger of Viacom18's media and JioCinema businesses into Star India Private Limited (SIPL) has become effective, forming a powerful new entity in the Indian media and entertainment industry.

The joint venture (JV) has received approvals from the National Company Law Tribunal, The Competition Commission of India, and other regulatory bodies.

Details of the merger

The JV is valued at Rs 70,352 crore (approximately $8.5 billion), excluding anticipated synergies. It has brought together some of India's most iconic television and digital brands, such as Star, Colors, JioCinema, and Hotstar, into one platform.

Additionally, RIL has invested Rs 11,500 crore (~$1.4 billion) into the JV for its growth. The JV has allotted shares to Viacom18 and RIL as consideration for the assets and cash, respectively.

Ownership details

Post-merger, RIL controls the venture with 16.34% ownership, Viacom18 holds 46.82%, and Disney retains a 36.84% stake.

The JV also operates 100+ TV channels and boasts a combined annual output of over 30,000 hours of TV content. Its digital platforms, JioCinema and Hotstar, together have a subscriber base exceeding 50 million.

The JV holds a portfolio of sports rights across cricket, football and other sports.

Nita Ambani becomes the Chairperson of the new JV

According to the company, Nita M. Ambani will be the Chairperson of the JV, with Uday Shankar as Vice Chairperson providing strategic guidance to the JV.

Key leadership includes Kevin Vaz overseeing entertainment, Kiran Mani leading digital operations, and Sanjog Gupta heading sports. 

The JV will be one of the largest Media & Entertainment companies in India with pro forma combined revenue of approximately Rs 26,000 crore (~$3.1 billion) for the fiscal year ended in March 2024.

Leadership comments

Mukesh D Ambani, Chairman & Managing Director of Reliance Industries Limited, said, "With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. Our deep creative expertise and relationship with Disney, along with our 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."

"This is an exciting moment for our two companies, as well as for India’s consumers, as we create one of the top entertainment entities in the country through this joint venture," said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. 

"By joining forces with Reliance, we are able to expand our presence in this important media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services," Iger added.

The merger, which was approved by regulatory authorities in India and internationally, reflects its global impact. The Competition Commission of India granted approval on August 27, 2024, with additional greenlights from anti-trust authorities in the EU, China, Turkey, South Korea, and Ukraine. 

In a related development, RIL has bought out Paramount Global’s entire stake of 13.01% in Viacom18 for Rs 4,286 crore.

As a result, Viacom18 is owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd. and 15.97% by Bodhi Tree Systems, on a fully-diluted basis.