In a landmark move shaking up India's media and entertainment landscape, The Walt Disney Company and Reliance Industries have disclosed merger plans for their Indian businesses.
The two industry giants are set to combine their Star India and Viacom18 units into a newly-created joint venture, named Star India, with a staggering valuation of approximately $8.5 billion post-merger, excluding synergies.
Under the terms of the deal, Reliance, led by Asia's wealthiest individual, Mukesh Ambani, will be in the control of the joint venture, putting in a whopping $1.4 billion into its growth strategy. The ownership structure will have Reliance holding a 16.38% stake, Viacom18 with 46.82%, and Disney with 36.84%.
Nita Ambani, the wife of Mukesh Ambani, is named to chair the board of the combined entity, while Uday Shankar, a former top Disney executive and current Viacom18 board member, will serve as vice-chair.
This merger marks a huge shift in the Indian media and entertainment landscape, creating an entertainment powerhouse with 120 TV channels and two streaming platforms. The move positions Reliance-Disney as a fierce competitor in India's $28 billion media and entertainment sector against industry heavyweights such as Sony, Zee Entertainment, and Netflix.
Both companies have shared their vision for the joint venture to become a leading destination for entertainment and sports content in India, leveraging their iconic media assets to capture audiences across television and digital streaming platforms.
For Disney, the merger is a strategic move to revitalize its presence in the Indian market and stem the tide of user exodus from its struggling streaming business. Meanwhile, Reliance aims to solidify its foothold in the media and entertainment sector, further strengthening its position as a dominant force in India's corporate landscape.
