On Thursday, The Walt Disney Co., Reliance Industries Ltd. (RIL), and Viacom 18 Media Private Ltd. announced the effective merger of Viacom18’s media and JioCinema operations into Star India, resulting in a significant joint venture in India. Additionally, RIL has invested approximately $1.4 billion into this joint venture (JV) to support its expansion.

“The JV has issued shares to Viacom18 and RIL as compensation for the assets and cash, respectively,” stated the companies. “The transaction values the JV at $8.5 billion on a post-money basis, excluding synergies. Following the completion of the aforementioned transactions, RIL will control the JV, which will be owned 16.34 percent by RIL, 46.82 percent by Viacom18, and 36.84 percent by Disney.”

Nita M. Ambani has been appointed as the chair of the JV, with Uday Shankar taking on the role of vice chair.

As part of this arrangement, Paramount has finalized the sale of its entire 13.01 percent equity stake in Viacom 18 Media to Reliance for a total purchase price of $508 million, which is expected to yield net proceeds of approximately $456 million, according to a regulatory filing.

“Optimizing our asset mix is a crucial aspect of our strategic plan,” Paramount stated. “The sale of our stake in Viacom 18 to Reliance offers an appealing financial return, benefits our balance sheet, and enhances our leverage. We also look forward to maintaining our licensing agreement with Viacom 18 as we continue to monetize Paramount’s exceptional content worldwide,” the company added.

“The JV encompasses some of the most iconic and engaging media brands in India across television and digital platforms,” the companies remarked. “The merger of ‘Star’ and ‘Colors’ in television, along with ‘JioCinema’ and ‘Hotstar’ in the digital realm, will provide a wide array of content across entertainment and sports for viewers in India and beyond. This joint venture marks a new chapter in India’s entertainment industry for consumers. The unique collaboration between Reliance and Disney combines their strengths in content creation and curation, world-class digital streaming capabilities, and a digital-first approach, enabling the JV to offer unmatched content choices at affordable prices to Indian viewers and the global Indian diaspora.”

The JV is poised to become one of the largest media and entertainment entities in India, with a pro forma combined revenue of roughly $3.1 billion for the fiscal year ending in March 2024. It operates over 100 TV channels and produces more than 30,000 hours of TV entertainment content each year.

The Competition Commission of India (CCI) approved the transaction in August, contingent on compliance with specific voluntary modifications proposed by the parties. The deal has also received approval from antitrust authorities in the EU, China, Turkey, South Korea, and Ukraine.

Person

Nita M. Ambani, Uday Shankar

Company Names

The Walt Disney Co., Reliance Industries Ltd., Viacom 18 Media Private Ltd., JioCinema, Paramount

Titles

Star, Colors, JioCinema, Hotstar

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