The merger between Reliance Industries and The Walt Disney Company’s Indian media assets is progressing, as the Ministry of Information & Broadcasting (MIB) has granted approval for the transfer of non-news TV channel licences from Viacom18 Media Pvt. Ltd to Star India. This marks a significant step toward the completion of the highly anticipated merger, which is poised to reshape India’s media landscape.
According to a regulatory filing by Reliance Industries on September 28, 2024, MIB’s approval came with conditions set by the Competition Commission of India (CCI). The merger will combine the media assets of Reliance’s Viacom18 and Disney Star, forming an $8.5 billion media giant, which will include two streaming platforms and over 80 TV channels. The new entity will compete with global players like Netflix, Amazon Prime Video, Zee Entertainment, and Sony Pictures Networks in both the linear and streaming sectors of the Indian media market.
The National Company Law Tribunal (NCLT) had earlier approved the merger scheme of Viacom18 Media and Digital18 Media (a Reliance subsidiary) with Star India on August 30, 2024. The merger involves the transfer of media operations from Viacom18 and JioCinema into Digital18, followed by the demerger and vesting of Viacom18’s assets into Star India. This restructuring is a key step in forming the combined entity.
Reliance Industries will hold a 63.16% stake in the merged company, while Walt Disney will retain 36.84%. Nita Ambani will serve as the chairperson of the joint venture, with Uday Shankar as the vice-chairperson. The CCI has already cleared the deal, subject to voluntary modifications, although specific details of these modifications remain undisclosed.
This merger is expected to create the largest media conglomerate in India, opening up new opportunities for competition and growth in the rapidly evolving media sector.
Key Highlights:
- MIB Approval: The Ministry of Information & Broadcasting has approved the transfer of non-news TV channel licences from Viacom18 to Star India, moving the Reliance-Disney merger closer to completion.
- Formation of Media Giant: The merger will create an $8.5 billion media entity, consolidating over 80 TV channels and two streaming platforms to compete with global players like Netflix and Amazon Prime.
- Leadership and Stakeholders: Reliance Industries will hold a 63.16% stake, while Disney retains 36.84%, with Nita Ambani as chairperson and Uday Shankar as vice-chairperson of the new entity.