By The highly anticipated Reliance Industries Ltd (RIL)-Disney Star merger finally came to fruition as RIL subsidiary Viacom18 announced the merger of their business with Disney’s Indian unit, Star India to create one of India’s largest TV and digital streaming platforms.
Under the terms of the agreement, Viacom18’s media operations will be merged with Star India Pvt Ltd (SIPL) through a court-approved scheme of arrangement. The JV, valued at Rs 70,352 crore ($8.5 billion), will see RIL take control and inject a further Rs 11,500 crore ($1.4 billion) into the venture to support its growth.
The joint announcement by RIL and Disney stated, “Post completion of the above steps, the JV will be controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.”
What this means for sports content in India
With the rich sports content available on both platforms, the merger will become a one-stop destination for Indian viewers to consume global sports content.
Sports fans will get to enjoy all the sports properties that fall under umbrella of Viacom18-Disney Star – Indian Premier League (IPL), Indian Super League (ISL), Women’s Premier League (WPL), Pro Kabaddi League (PKL), International Cricket Council (ICC), FIFA, Board of Control for Cricket in India (BCCI), Cricket Australia (CA), Cricket South Africa (CSA), Premier League (PL), LALIGA, Serie A, Big Bash League (BBL), Ligue 1, SA20, Major League Cricket (MLC), National Basketball Association (NBA), Badminton World Federation (BWF), MotoGP, and International Hockey Federation (FIH).
The JV will combine the vast experience of Disney Star along with the technological prowess of JioCinema, which recently introduced multiple camera angles in live cricket during the IPL 2023. It also makes it easier for advertisers to buy ad space and meet their marketing plans.
The merger promises to be a win-win for all stakeholders and a major cause for concern for competitors like Sony, Zee, and even smaller platforms like Fancode.
More about the merger
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance group”.
Bob Iger, CEO of Walt Disney Co., said “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company. Reliance has a deep understanding of the Indian market and consumer, and together, we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content.”
Former Walt Disney executive Uday Shankar who owns about 16 percent of Viacom18 said, “All of us are committed to delivering exceptional value to our audiences, advertisers, and partners. This joint venture is poised to shape the future of entertainment in India and accelerate the Hon’ble Prime Minister’s vision of making Digital India a global exemplar.”
The deal is subject to regulatory, shareholder, and other customary approvals. It is expected to be completed in the last quarter of 2024 or the first quarter of 2025.
The new board will have 10 members, with RIL nominating five, Disney three, and two independent directors. Nita Ambani will assume the role of Chairperson of the merged entity, with former Walt Disney executive Uday Shankar, joining as Vice Chairperson.
