The Walt Disney Co. said it signed a deal with Reliance Industries that forms a joint venture in India.
The deal combines Disney's Star India with Viacom18 and values the joint venture at $8.5 billion.
Viacom18 is a joint venture formed by Reliance, Paramount Global and James Murdoch's Bodhi Tree Systems.
Reliance has agreed to invest $1.4 billion to grow the joint venture.
India has been a problem for Disney since it lost streaming rights to Indian Premier League cricket matches to Viacom18.
“India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company,” said Disney CEO Bob Iger.. “Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content.”
Nita M. Ambani will be the chairperson of the venture with. Uday Shankar serving as as vice chairperson providing strategic guidance to the JV
The JV will be granted exclusive rights to distribute Disney films and productions in India, with a license to more than 30,000 Disney content assets, providing a full suite of entertainment options for the Indian consumer.
“This is a landmark agreement that heralds a new era in the Indian entertainment industry." said Mukesh D Ambani, chairman & managing director of Reliance Industries. "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.”
