Reliance and Disney have completed a landmark Indian media merger, creating an $8.5 billion entertainment giant that will dominate India’s streaming and TV market.
The deal, proposed in February, would bring together Disney’s Star India and Reliance-controlled Viacom18 into a joint venture that would control about 85% of India’s streaming market and about half of TV viewership in the world’s most populous country, according to analysts. It is said that it will be controlled.
Reliance, run by Mukesh Ambani, Asia’s richest man, will run the venture after investing $1.4 billion in new capital. The conglomerate and its subsidiary Viacom18 will hold a 63.16% stake in the venture, while Disney will hold 36.84%.
The merger will combine streaming platforms JioCinema and Hotstar with over 100 TV channels to create India’s largest media group with annual revenue of $3.1 billion. The venture has more than 50 million streaming subscribers and plans to produce 30,000 hours of TV content annually.
“With the establishment of this JV, the Indian media and entertainment industry is entering an era of transformation,” Ambani said in a statement. “Our deep creative expertise and relationship with Disney, coupled with our unparalleled understanding of the Indian consumer, will ensure unparalleled content selection at affordable prices for Indian viewers. I am very excited about the future of JV and wish them every success.”
The joint venture brings together control of India’s most valuable media rights, including cricket assets such as the Indian Premier League, ICC tournaments and domestic cricket, and global sports content including the FIFA World Cup and Premier League.
Mukesh Ambani’s wife Nita Ambani will chair the venture, while media veteran Uday Shankar will serve as vice-chairman. Operational leadership includes Kevin Vaz, who leads entertainment, Kiran Mani, who leads digital operations, and Sanjog Gupta, who oversees sports content.
“By joining forces with Reliance, we can expand our presence in this important media market and offer our viewers an even stronger portfolio of entertainment, sports content and digital services,” Disney CEO Robert Iger said in a statement. He said.
The deal, which has secured regulatory approval from competition authorities in India, the EU, China and other jurisdictions, marks a significant step back for Disney in its direct control over one of its most important international markets.
This is a developing story. More to follow.
