owned by ril Viacom 18 Will be merged with the local branch of Walt Disney star India is strengthening Reliance’s grip on the country’s $28 billion media and entertainment industry. Reliance will hold 63% stake in the merged entity along with Viacom18, while Disney will hold the remaining 37%.
Reliance will invest $1.4 billion (Rs 11,500 crore) in the merged company to finance its growth plans and as a result, the transaction will value the new entity at $8.5 billion (Rs 70,352 crore). The announcement comes after Japan’s Sony Corp closed a $10 billion Fusion Between its local branch and Zee Entertainment Enterprises.
Nita Ambani, wife of Reliance Chairman Mukesh Ambani, will lead the board of the merged company, while Bodhi Tree Systems co-founder Uday Shankar will be its vice-chairman. Neeta’s appointment comes almost six months after she left the job RILThe board will focus on philanthropy.
This marks the return of Vikas Shankar to Disney, where he was the President of Star India. After leaving Disney, Shankar joined hands with British-American businessman James Murdoch to establish Bodhi Tree.
Bodhi Tree, of which Qatar Investment Authority and NBCUniversal and Sky owner Comcast are also shareholders, holds about a 13% stake in Viacom18. With a 47% stake, Viacom18 will be the largest shareholder of the merged entity, which will be controlled by Reliance, a joint statement said.
The merged entity will have a viewership of over 750 million across the country and will also cater to the needs of NRIs.
Disney is grappling with challenges like retaining customers in India as well as securing the streaming rights of the prestigious cricket tournament. In 2022, Reliance pipped Disney to win the streaming rights of the IPL and secured a multi-year deal in April to air the HBO show, which it previously had with Disney. Reliance streamed IPL matches for free which resulted in loss of subscribers to Disney+Hotstar.
The statement said Disney may contribute some additional media properties to the combined entity. However, it did not reveal details. Disney CEO Bog Iger said, “Reliance has a deep understanding of the Indian market and consumers,” and the deal will allow “us to better serve consumers with a broader portfolio of digital services and entertainment and games.”