Reliance, Disney Announce Joint Venture to Merge Media Assets in India

Reliance and Disney on Wednesday announced a strategic joint venture that will merge their digital streaming and television assets in India. The merger will result in Reliance combining the businesses of Viacom18 and Star India into a single unit called Star India Private Limited (SIPL) through a court-approved scheme of arrangement. Reliance Industries Limited (RIL) will control 16.34 percent of the joint venture, whereas the other two parties, Viacom18 and Disney, will control 46.82 percent and 36.84 percent, respectively.

Reliance has also agreed to invest Rs. 11,500 crore in the venture which will be used to determine its growth strategy. The stakeholders have stated that the transaction values the joint venture at Rs. 70,352 crore on a post-money basis. The Chairperson of the new business unit will be Nita Ambani and Uday Shankar, the Co-Founder of Bodhi Tree Systems, will hold the position of Vice Chairperson and offer strategic advice. This merger is also expected to unite two of India's leading digital streaming platforms — JioCinema and Disney+ Hotstar.

Disney will provide content licenses to the joint venture and bring its large catalogue of films and shows to the platform. Additionally, the company will also grant exclusive rights to distribute Disney films and productions in India, with a licence to more than 30,000 Disney content assets. Further, the Hollywood giant could also contribute additional media assets to the JV, however, those are subject to regulatory and third-party approvals.