India’s Media Landscape Shifts as Reliance Acquires Star India for $8.5 Billion

In a monumental deal shaking the Indian media landscape, Reliance Industries, through its subsidiary Viacom18, is set to acquire Star India, currently owned by The Walt Disney Company. This mega-merger, valued at a staggering $8.5 billion (Rs 70,352 crore), will birth the largest media entity in India.

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The Deal Breakdown

Reliance will hold the reins of the merged entity, with Viacom18 taking a 46.82% stake, Disney retaining a 36.84% direct holding, and Reliance Industries itself contributing 16.34%. To solidify this ownership structure, Reliance will inject an additional $1.4 billion (Rs 11,500 crore) into the new joint venture (JV).

🚨RIL, Viacom18, and Walt Disney merge Viacom18's media into Star India, forming a JV. RIL invests Rs 11,500 crore in the Rs 70,352 crore-valued venture.

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— Current Affairs by Testbook (@Testbook_CA) February 29, 2024

While Disney relinquishes a majority stake, the deal grants them exclusive rights to distribute their films and productions in India, along with access to over 30,000 Disney content assets. Additionally, Disney may contribute further media assets, subject to regulatory approvals.

Nita Ambani, Chairperson of Reliance Industries, will lead the JV, with Uday Shankar, former Star CEO, holding the Vice Chairperson position. This powerhouse duo aims to revolutionize the Indian media and entertainment industry.

A Content Powerhouse Emerges

The merger brings together iconic content libraries from both entities. Popular channels like Colors, StarPlus, StarGOLD, Star Sports, and Sports18 will be under one roof, along with access to highly anticipated events on JioCinema and Hotstar. This expansive reach is expected to cater to over 750 million viewers across India and the global Indian diaspora.

The JV aims to spearhead the digital transformation of Indian media and entertainment, offering comprehensive and high-quality content anytime and anywhere. This ambition extends beyond India, with plans to cater to the entertainment needs of the Indian diaspora worldwide.

Reliance and Disney announce strategic joint venture: Viacom18 will be merged into Star India Pvt Ltd

• Reliance to invest ₹11,500 crore

• The joint venture is valued at ₹70,352 crore, with majority control by Reliance (16.3% by RIL, 46.8% by Viacom18) and 36.8% by… pic.twitter.com/iVxBvhSYKv

— Stocktwits India 🇮🇳 (@StocktwitsIndia) February 28, 2024

A Win-Win for Viewers

The combined expertise of Viacom18 and Star India, coupled with Disney’s renowned content library, promises a wider range of domestic and international entertainment options. Additionally, the focus is on delivering affordable and innovative digital entertainment experiences, making it a win-win for viewers across the board.

This landmark deal, subject to various approvals, is expected to be finalized by the end of 2024 or the first quarter of 2025. With billions of dollars at stake and industry titans joining forces, this merger paves the way for a significant transformation of the Indian media landscape, promising a future brimming with diverse and accessible entertainment options for viewers across the globe.