Walt Disney and Indian conglomerate Reliance have unveiled plans to merge their respective Indian operations, integrating Star India and Viacom18 units into a new entity named the Star India joint venture. The combined venture, estimated to be worth approximately $8.5 billion post-money (excluding synergies), aims to leverage the vast Indian market, with over 750 million viewers.
The strategic move seeks to create a powerful force in the Indian media and entertainment landscape, bringing together the content and distribution strengths of both entities. The joint venture is expected to benefit from increased scale, diverse content offerings, and enhanced capabilities to cater to the dynamic preferences of the Indian audience.
However, the completion of the merger is subject to regulatory approvals, as well as the green light from shareholders and adherence to customary closing conditions. If all goes according to plan, the companies anticipate finalizing the deal in either the last quarter of 2024 or the first quarter of 2025.
Upon completion of the transaction, Reliance, led by Mukesh Ambani, who is considered Asia’s wealthiest individual, will take control of the joint venture. The conglomerate plans to invest $1.4 billion into the growth initiatives of the newly formed entity. The ownership structure of the joint venture will see Reliance holding a 16.34% stake, Ambani’s Viacom18 with a 46.82% stake, and Disney retaining a 36.84% stake.
This strategic partnership aims to navigate the evolving landscape of the Indian media and entertainment industry, where digital consumption and streaming services are gaining prominence. By combining their resources, expertise, and content libraries, Disney and Reliance aim to create a powerhouse capable of delivering a wide array of entertainment options to the diverse Indian audience.
The move reflects the ongoing trend of consolidation within the media and entertainment sector as companies seek to strengthen their positions in the face of technological disruptions and changing consumer behaviors. The joint venture will likely focus on expanding its reach, offering innovative content, and tapping into the vast market potential in India.
While the merger is still pending approvals, the announcement underscores the strategic vision of both companies to collaboratively address the challenges and opportunities in one of the world’s fastest-growing entertainment markets. The success of the joint venture will depend on how effectively it can navigate the regulatory landscape and align its offerings with the preferences of the Indian audience in the evolving digital era.
Walt Disney and Indian conglomerate Reliance are merging their Indian operations to form a joint venture called Star India. The aim is to leverage India’s vast market potential, with over 750 million viewers, by combining the strengths of both companies. Mukesh Ambani’s Reliance will lead the joint venture, investing $1.4 billion into its growth initiatives. Nita Ambani will chair the venture, with Uday Shankar as vice chairperson. Disney CEO Bob Iger expressed optimism about the partnership’s long-term value creation. Additionally, Disney expects to incur non-cash impairment charges of $1.8 billion to $2.4 billion in the current quarter, partly due to a write-down of Star India’s assets.