Reliance Industries Limited (RIL) and The Walt Disney Company have inked a deal to merge Viacom18 and Star India into a formidable joint venture (JV). This mega-merger, announced on Wednesday, sees RIL pumping in a whopping ₹11,500 crore ($1.4 billion) to fuel the JV’s ambitious growth plans.
What’s the structure of the merger?
With a valuation pegged at ₹70,352 crore ($8.5 billion), the JV will see RIL holding a 16.34% stake, while Viacom18 and Disney will have 46.82% and 36.84% respectively. Steering the ship will be Nita Ambani as Chairperson and Uday Shankar as Vice Chairperson, bringing their strategic acumen to the forefront.
What does the JV promise for India’s digital streaming space?
Promising to be a leader in both TV and digital streaming, the JV will blend iconic entertainment and sports brands, offering viewers a treasure trove of content. From popular channels like Colors and StarPlus to major sports events, the venture aims to captivate over 750 million viewers in India and beyond. Moreover, it secures exclusive rights to distribute Disney’s cinematic gems in India, enriching its content library with over 30,000 Disney assets.
This partnership heralds a new dawn for digital entertainment in India, with a focus on delivering high-quality content anywhere, anytime. Mukesh Ambani and Bob Iger, the visionaries behind this collaboration, aim to make this JV a cornerstone of India’s digital and entertainment revolution, aligning it with the national vision of a Digital India.
Regulatory and shareholder approvals are pending, but they aim to complete this historic merger by late 2024 or early 2025.
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