New Delhi: Reliance Industries has completed the merger of its media assets with the India business of global media house Walt Disney to form a new joint venture worth Rs 70,352 crore.
The JV, in which Reliance Industries has invested Rs 11,500 crore (USD 1.4 billion) for its growth, will be headed by Nita Ambani as its Chairperson, according to a joint statement.
"The transaction values the JV at Rs 70,352 crore (USD 8.5 billion) on a post-money basis, excluding synergies," it said. At the closing of the transactions, the said JV is controlled by RIL.
Reliance Industries holds a 16.34 per cent stake in the JV, while its step-down unit Viacom18 holds 46.82 per cent and Disney the rest 36.84 per cent. "Nita M. Ambani will be the Chairperson of the JV, with Mr Uday Shankar as Vice Chairperson providing strategic guidance to the JV," it said.
Viacom 18 Media and The Walt Disney Company have already received necessary approvals required from authorities such as CCI, and NCLT for the merger of the media and JioCinema businesses of media and JioCinema businesses of Viacom18 into Star India.
The JV will be one of the largest media & entertainment companies in India with pro forma combined revenue of approximately Rs 26,000 crore (USD 3.1 billion) for the fiscal year ended in March 2024.
The JV operates over 100 TV channels and produces more than 30,000 hours of TV entertainment content annually. The JioCinema and Hotstar digital platforms have an aggregate subscription base of over 50 million. The JV holds a portfolio of sports rights across cricket, football and other sports.
Commenting on the development RIL Chairman & Managing Director Mukesh Ambani 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,” he said.
