Reliance-Disney Deal: NCLT Clears Merger Of Viacom18, Star India: All You Need To Know

Right after Competition Commission Of India's (CCI) approval, the NCLT Mumbai has given green signal to Reliance-Disney mega deal. The NCLT has cleared the merger of Viacom18 and Star India Deal.

Reliance and Disney are moving closer to create India's largest media and entertainment company. On August 28, the CCI approved the $8.5 billion merger between the behemoths.

During the 47th AGM of Reliance, Mukesh Ambani spoke about the deal with Disney. He said, "This marks the beginning of a new era in India's entertainment industry. We are combining content creation with digital streaming."

Further, Ambani added, "Our digital-first approach will deliver unparalleled content at affordable prices. We will cater to every consumer's tastes. We will provide world-class digital entertainment across the spectrum. We are excited about this partnership. I warmly welcome Disney to the Reliance family."

"Just like Jio and Retail, our expanded Media business will be an invaluable growth centre in the Reliance ecosystem," Ambani said on August 29, 2024.

In February 2024, Reliance and The Walt Disney Company entered into definitive agreements to form a joint venture ("JV") that will combine the businesses of Viacom18 and Star India. As part of the transaction, the media undertaking of Viacom18 will be merged into Star India Private Limited ("SIPL") through a court approved scheme of arrangement.

The transaction values the JV at ₹70,352 crore (~US$ 8.5 billion) on a post-money basis, excluding synergies. Post completion of the above steps, the JV will be controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney, as per the filing.

Additionally, Reliance has agreed to invest at closing ₹11,500 crore (~US$ 1.4 billion) into the JV for its growth strategy. Also, Disney may contribute certain additional media assets to the JV, subject to regulatory and third-party approvals.

The JV is expected to be one of the leading TV and digital streaming platforms for entertainment and sports content in India, bringing together iconic media assets across entertainment (e.g. Colors, StarPlus, StarGOLD) and sports (e.g. Star Sports and Sports18) including access to highly anticipated events across television and digital platforms through JioCinema and Hotstar. The JV will have over 750 million viewers across India and will also cater to the Indian diaspora across the world.

According to the agreement, the combination of the media expertise, cutting-edge technology and diverse content libraries of Viacom18 and Star India will allow the JV to offer more appealing domestic and global entertainment content and sports livestreaming services, while delivering an innovative and convenient digital entertainment experience at affordable prices. With the addition of Disney's acclaimed films and shows to Viacom18's renowned productions and sports offerings, the JV will offer a compelling, accessible and novel digital-focused entertainment experience to people in India and the Indian diaspora globally.