Reliance Industries and Disney Forge Historic Partnership in Mega Media Merger

Reliance Industries Ltd (RIL) and Walt Disney have inked a groundbreaking strategic joint venture, announcing the merger of their media operations—Viacom18 and Star India. This move marks the creation of India's largest media conglomerate, spanning TV broadcasting, streaming, movies, and sports, according to the statement released by the Mukesh Ambani-led conglomerate on February 28.

Strategic Reliance Disney joint venture Details:

In an effort to consolidate their media empires, RIL has committed to investing ₹11,500 crore ($1.4 billion) at closing into the joint venture for its growth strategy. The transaction places the joint venture's valuation at ₹70,352 crore ($8.5 billion) on a post-money basis, excluding synergies. Post the outlined steps, RIL will exercise control over the joint venture, owning 16.34%, while Viacom18 and Disney will hold 46.82% and 36.84%, respectively.

Leadership and Exclusive Rights:

Nita M. Ambani is set to assume the role of Chairperson of the joint venture, with Uday Shankar serving as Vice Chairperson, offering strategic guidance. As part of the deal, the joint venture secures exclusive rights to distribute Disney films and productions in India, coupled with a license for more than 30,000 Disney content assets, providing an extensive entertainment portfolio for Indian consumers.

Key Statements from Leadership:

Mukesh D Ambani, Chairman and Managing Director of Reliance Industries, expressed his enthusiasm, stating, "This is a landmark agreement that heralds a new era in the Indian entertainment industry." Ambani welcomed Disney as a key partner in the venture, emphasizing their commitment to delivering unparalleled content to audiences nationwide.

Robert A. Iger, CEO of The Walt Disney Company, highlighted the significance of India as the world's most populous market, expressing excitement about the opportunities the joint venture presents. Uday Shankar, Co-founder of Bodhi Tree Systems, underscored the commitment to delivering exceptional value to audiences, advertisers, and partners.

Reliance Disney joint venture Market Impact:

Reliance Industries' share price settled nearly 2% lower on the announcement day, quoting at ₹2,915. Despite this, the RIL stock has gained over 12% year-to-date.

Key Highlights of the Joint Venture 

• Merged entity valued at ₹70,352 crore ($8.5 billion), excluding potential synergies.

• RIL to invest ₹11,500 crore ($1.4 billion) in the joint venture for its growth strategy.

• Post-completion ownership structure:

  • RIL: 16.34%

  • Viacom18: 46.82%

  • Disney: 36.84%

• Nita M. Ambani to serve as Chairperson, with Uday Shankar as Vice Chairperson.

• JV gains exclusive rights to distribute Disney content in India, including over 30,000 assets.