Reliance Industries, led by billionaire Mukesh Ambani, is making waves in the media and entertainment industry with its proposed $8.5 billion merger of Viacom18 and Star India Pvt Ltd. The conglomerate has sought approval from the Competition Commission of India (CCI) for this groundbreaking move, which aims to create a powerhouse in the Indian market.
The merger will see the combination of Viacom18’s entertainment business, a part of the Reliance Industries Ltd (RIL) group, with Star India Pvt Ltd, a wholly-owned entity of The Walt Disney Company (TWDC). This strategic union will result in a joint venture shared by RIL, Viacom18, and TWDC subsidiaries, paving the way for a new era in the media landscape.
According to a notice filed with the CCI, the proposed transaction is expected to have no adverse impact on competition in India. However, key markets such as licensing of audiovisual content rights, distribution of broadcast TV channels, provision of AV content, and supply of advertising space will be closely monitored during the assessment process.
Star India Pvt Ltd boasts a diverse portfolio of media activities, including TV broadcasting, motion pictures, and an OTT platform. On the other hand, Viacom18 is involved in broadcasting TV channels, operating an OTT platform, and producing/distributing motion pictures in India and globally.
The merger between Walt Disney Co and Reliance Industries, announced earlier this year, is set to create a colossal entity with a valuation of ₹70,000 crores ($8.5 billion). With over 100 channels in multiple languages, two leading OTT platforms, and a massive viewer base of 750 million, the new entity will dominate the Indian media and entertainment sector.
Heading the joint venture will be Nita Ambani, wife of Mukesh Ambani, as Chairperson, alongside Vice Chairperson Uday Shankar. While Reliance and its affiliates will hold a majority stake of 63.16%, Disney will retain 36.84% ownership. Reliance has also committed to investing around ₹11,500 crores in the joint venture to bolster the growth of the OTT business.