The transaction values the joint venture at Rs 70,352 crore (~US$ 8.5 billion) on a post-money basis, excluding synergies. At the closing of the transactions, the JV is controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.
The JV will be led by Nita M. Ambani, Chairperson, and Uday Shankar, Vice Chairperson, who will offer strategic guidance.
This merger brings together some of India’s most recognized media brands, including ‘Star’ and ‘Colors’ in television, and digital platforms such as ‘JioCinema’ and ‘Hotstar’. The aim is to provide diverse content across entertainment and sports for audiences both in India and internationally.
This joint venture (JV) follows approvals from regulatory authorities including the National Company Law Tribunal (NCLT) in Mumbai, the Competition Commission of India (CCI), and global anti-trust bodies from the EU, China, Turkey, South Korea, and Ukraine.
The merger consolidates the media and JioCinema businesses of Viacom18 into Star India Private Limited (SIPL), creating one of India’s largest media entities.The combined entity will have approximately Rs 26,000 crore in pro forma combined revenue for the fiscal year ending in March 2024. It will operate over 100 television channels and produce more than 30,000 hours of content annually. With a joint digital presence through JioCinema and Hotstar, the JV also has over 50 million subscribers and holds a significant portfolio of sports rights, including major cricket and football events.
The JV will be led by three CEOs, each overseeing a different vertical. Kevin Vaz will head the entertainment segment across all platforms, Kiran Mani will lead the digital division, and Sanjog Gupta will oversee the sports division.
RIL Chairman Mukesh D. Ambani hailed the merger as a game-changer for the Indian entertainment industry. “With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer will ensure unparalleled content choices at affordable prices for Indian viewers,” he said.
Disney CEO Robert A. Iger expressed similar enthusiasm, noting the venture’s potential to reshape entertainment options for Indian consumers. “By joining forces with Reliance, we are able to expand our presence in this important media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services.”
Reliance acquires Paramount Global’s stake in Viacom18
In a separate transaction, RIL acquired Paramount Global’s 13.01% stake in Viacom18 for ₹4,286 crore. Following this buyout, Viacom18’s ownership structure comprises 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd., and 15.97% by Bodhi Tree Systems on a fully diluted basis.
Uday Shankar, Co-Founder of Bodhi Tree Systems, said, “James and I are excited to be partners in this journey to disrupt the media and entertainment industry in India. The new organisation is committed to deliver an unprecedented level of creativity, disruption and new age consumer experience. As media consumption continues to move to an integrated TV-digital ecosystem, the merger of Viacom18 and Star India offers a unique opportunity to reorient the industry to better serve diverse cohorts of consumers across the country. Together, we aim to build India’s largest integrated media platform which will deliver unparalleled experiences in innovative and exciting ways.”
