However, the filing added that it is subject to conditions laid by the Competition Commission of India
The merger is poised to create the largest media entity in the country, valued at nearly $8.5 Bn and will house two streaming services and around 120 television channels
As a part of this merger, Reliance Industries will hold a stake of 63.16% in the new entity, while Disney will own the remaining 36.84%
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The government has approved the transfer of non news TV channel licenses from Reliance Industries’ Viacom18 to Star India.
“… it is hereby informed that the Ministry of Information and Broadcasting, Government of India, vide its order dated September 27, 2024, has granted its approval for transfer of licenses relating to non news and current affairs TV channels held by Viacom18 Media Private Limited in favour of Star India Private Limited,” as per exchange filings by Reliance Industries.
However, the filing added that it is subject to conditions laid by the Competition Commission of India.
The merger is poised to create the largest media entity in the country, valued at nearly $8.5 Bn and will house two streaming services and around 120 television channels.
As a part of this merger, Reliance Industries will hold a stake of 63.16% in the new entity, while Disney will own the remaining 36.84%.
The proposed combination aims to merge the entertainment businesses of Viacom18, a part of the Reliance Industries Ltd (RIL) group, and Star India Private Limited (SIPL), which is wholly owned by The Walt Disney Company (TWDC).
Following the transaction, SIPL will become a joint venture (JV) jointly held by RIL, Viacom18, and TWDC’s existing subsidiaries.
While Nita Ambani is set to chair the joint venture, Uday Shankar will be the Vice Chairperson.
Notably, RIL will also infuse around $1.4 Bn into the joint venture to bolster its growth strategy and enhance its competitive edge against global media giants.
This comes after NCLT greenlit the merger deal on August 30 after CCI gave its consent on August 28.
It is pertinent to note that CCI’s approval was vital as it ensured that the the merger did not violate antitrust laws and maintained competitive integrity in the media sector.
Earlier in February, RIL and The Walt Disney Company inked a deal earlier this year to set up a joint venture (JV).
As this merger unfolds, the newly formed entity will position itself to compete against players in India’s media landscape like Sony, Netflix, and Amazon Prime Video.
In a bid to get the necessary approvals for the merger, RIL and Walt Disney have reportedly been offering a slew of rebates, including proposals to offload some news channels.
Last month, the two parties reportedly also proposed a two-year freeze on advertising rate cards to secure the CCI’s approval for their merger.
On the financial front, Walt Disney previously disclosed that it had incurred over $2 Bn in charges for the second quarter of 2024 due to goodwill impairments related to Star India, stemming from the merger with Reliance Industries.
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