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The National Company Law Tribunal (NCLT) on Friday (August 30) has given a green light to the merger between Reliance Industries' Viacom18 Media and The Walt Disney Company's Star India. The merger is valued at around Rs 70,000 crore (approx USD 8.5 billion).
The Merger Breakdown: What’s Happening?
The NCLT's approval on August 30, 2024, comes after the Competition Commission of India (CCI) gave the nod two days earlier.
This merger was the part of a larger scheme involving the major players in the industry such as Viacom18, Digital18, and Star India, which will consolidate these media powerhouses into a single entity.
Key Players in the Deal
Reliance Industries: The well known and one of the major Indian conglomerate, led by billionaire Mukesh Ambani, is set to hold a 63.16 per cent stake in this new joint venture.
The Walt Disney Company: Disney will own 36.84 per cent of the merged entity.
Investments
The Mukesh Ambani-owned Reliance will be investing around Rs 11,500 crore which is approximately around USD 1.4 billion into this joint venture.
Furthermore, the merger will also combine Viacom18’s popular channels, such as Colors and JioCinema, with Star India’s assets, including StarPlus and Hotstar.
Mukesh Ambani | File
Mukesh Ambani, the Chairman of Reliance Industries, also in the 47th AGM meeting of the company highlighted about the merger as the dawn of a new era for Indian entertainment.
He also further added, “We are thrilled to welcome Disney into the Reliance family".
“Just as Jio and Retail transformed their respective industries, this expanded media venture will be a cornerstone of our growth strategy,” said Ambani.
