Reliance-Disney Joint Venture: A Major Transformation in Indian Entertainment

Reliance Industries Limited (RIL) has taken a significant step forward in the Indian entertainment landscape, receiving the green light from the Ministry of Information and Broadcasting, Government of India, for the transfer of licenses for non-news and current affairs television channels from Viacom18 Media Private Limited to Star India Private Limited. This approval aligns with the conditions set by the Competition Commission of India (CCI), marking a pivotal moment in the strategic joint venture between RIL and Disney.

The partnership, first announced on February 28, 2024, through a media release titled "Reliance and Disney Announce Strategic Joint Venture to Bring Together the Most Compelling and Engaging Entertainment Brands in India," represents a comprehensive merger between Viacom18, a subsidiary of RIL, and Star India, Disney's Indian media arm. RIL confirmed the government's official approval for the license transfer through an order dated September 27, 2024, building upon earlier disclosures made on August 28 and August 30 of the same year.

This collaboration aims to create India's largest television and digital streaming entity, following the ₹70,350 crore merger between Reliance Industries and Disney's Indian media assets. The CCI granted its approval on August 28, 2024, and the Mumbai bench of the National Company Law Tribunal (NCLT) provided the green light for the Viacom18-Star India deal on August 30.

Structured through a court-approved scheme of arrangement, the merger will combine Viacom18's media operations with Star India Ltd. Valued at ₹70,350 crore (approximately $8.5 billion), Reliance Industries will infuse ₹11,500 crore into the venture to support its expansion strategy. This merger creates a formidable competitor against established players like Sony, Netflix, and Amazon, boasting an impressive portfolio of 120 TV channels and two streaming services.

The joint venture will feature a 10-member board, with Reliance nominating five members, Disney nominating three, and two independent directors rounding out the structure. Nita Ambani will take on the role of Chairperson of the merged entity, while former Walt Disney executive Uday Shankar will serve as Vice Chairperson. The merger is expected to be finalized by the end of 2024 or early 2025.

Ownership of this joint venture will be divided as follows: RIL: 16.34 percent, Viacom18: 46.82 percent, and Disney: 36.84 percent. Despite this distribution, RIL will retain control over the newly formed entity under the terms of the merger.

In earlier press releases, both RIL and Disney expressed their aim for this joint venture to dominate the television and digital streaming space. The combined venture will cater to a viewership exceeding 750 million across India and the global Indian diaspora. With an impressive portfolio featuring iconic brands like Colors, StarPlus, and Hotstar, the partnership is set to deliver a diverse array of entertainment and sports content to audiences worldwide.

At the 47th annual general meeting of RIL on August 29, Chairman Mukesh Ambani highlighted the significance of this partnership with Disney, describing it as the "beginning of a new era in India's entertainment industry." He emphasized that the combination of content creation and digital streaming would drive this collaboration forward. "We will provide world-class digital entertainment across the spectrum, catering to every consumer's taste," Ambani stated, adding that the joint venture’s digital-first approach will offer unparalleled content at affordable prices.

The Reliance-Disney joint venture signifies a transformative moment for India's entertainment landscape, promising a blend of world-class content, innovative digital streaming, and extensive reach across diverse audience segments. As the partnership prepares to challenge industry giants, it is poised to redefine how India consumes entertainment, paving the way for a new era of compelling experiences. More than just a business transaction, this merger embodies a strategic vision to create a unified entertainment powerhouse that will shape the future of India's media and entertainment industry for years to come.