Reliance, Disney Announce JV, RIL to Invest Rs 11,500 Crore

Reliance Industries Limited (RIL), Viacom18, and Disney have signed a binding agreement to form a new joint venture (JV) that will combine the business assets of Viacom18 and Star India. As per the agreement, the media undertaking of Viacom18 will be merged into Star India Private Limited (SIPL). Reliance Industries has agreed to invest Rs 11,500 crore into the JV to fuel its growth.

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The transaction values the newly formed JV at Rs 70,352 crore or about US $8.5 billion on a post-money basis. After this is done, the JV will be controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18, and 36.84% by Disney.

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Nita M. Ambani will be the chairperson of the JV, with Mr Uday Shankar as the vice chairperson. The JV will automatically become the largest TV and digital streaming platform for entertainment and sports content in India, bringing together many major media assets such as Colors, StarPlus, Star Gold, Star Sports, Sports18, JioCinema and Hotstar. RIL in a release said that the JV will have over 750 million viewers across India.

The JV will have the exclusive rights to distribute Disney films and productions in India with a license to more than 30,000 Disney content assets.

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.”