It’s Official! Reliance & Disney Seal Merger Deal For India Media Ops

Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18) and The Walt Disney Company have signed binding agreements to set up a joint venture (JV) that will combine the businesses of Viacom18 and Star India Private Limited.

The deal values the JV at a whopping $8.5 Bn on a post-money basis. Post completion, the JV will be controlled by RIL, owning 16.34%, while Viacom18 and Disney will be holding 46.82% and 36.84% of the company’s stakes, respectively.

The transaction is expected to be completed between October and December this year or in the first four months of 2025.

Further, Reliance has announced that it will be investing INR 11,500 Cr in the JV. The resultant entity will exclusively hold the rights to distribute Disney’s content in India. This will be an addition to Reliance and Viacom18-owned sports content. The companies anticipate the entity to have a user base of 750 Mn in India.

“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,” Ambani said.

The JV’s board will be helmed by Nita Ambani while Bodhi Trees’ Uday Shankar will act as a vice-chairman of the entity. 

Nita Ambani’s appointment comes close on the heels of her quitting the board of Reliance Industries to reportedly “focus more on charity work”. 

Further, it was earlier speculated that the media veteran, Shankar, would likely helm the entity. His VC investment firm Bodhi Tree, which was founded in 2021, in association with British American billionaire James Murdoch, controls a 15.97% stake in Viacom18. Notably, RIL’s Network18 holds a majority stake in Viacom18. 

Shankar worked with Disney’s Star TV for 17 years and finally quit in January 2021 as the chief executive of the network.  

“We are privileged to be enhancing our relationship with Reliance to now also include Disney, a global leader in media & entertainment. 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,” Shankar said. 

Goldman Sachs is the financial and valuation advisor for the deal while Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co and Shardul Amarchand Mangaldas & Co are acting as legal counsels to RIL and Viacom18 on the transaction. 

Ernst & Young has provided an independent valuation to RIL and Viacom18, while HSBC India, acting as financial advisor, has provided a Fairness Opinion to Viacom18.

The Raine Group is acting as the lead financial advisor to Disney on the transaction. Citi is acting as a financial advisor to Disney.  

The entity, whose name is still a mystery, is anticipated to emerge as one of the foremost names in India’s media and entertainment market. It will boast more than 120 TV channels, including Star Plus, Colors, and Star Sports. In addition, it will have streaming platforms JioCinema and Disney+ Hotstar under its ambit. 

While the merger is now official, it still needs to be cleared by the Competition Commission of India. CCI’s scrutiny has been triggered because Disney and Reliance own over 40% stake in both TV and streaming segments.

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