The Wrap reports that Disney and Reliance Industries have closed their $8.5 billion merger of Star India and Viacom18.
What’s Happening:
- The Wrap has shared that Disney and India’s Reliance Industries have completed their $8.5 billion merger of Star India and Viacom18.
- The joint venture will become one of the largest media and entertainment companies in India, with an expected combined revenue of $3.1 billion for the fiscal year ending in March 2024. Approved by India, the European Union, China, Turkey, South Korea and Ukraine, the joint venture will boast a portfolio of sports rights including cricket and football.
- With over 100 TV channels, it will showcase over 30,000 hours of TV content annual.
- The merger also includes JioCinema and Hotstar streaming services, which, combined, a subscriber network of over 50 million people.
- Reliance will control the new JV and will have an ownership take of 16.34%. Viacom and Disney will own 46.82% and 36.84%, respectively.
- Disney acquired Star India during the $71.3 billion acquisition of 21st Century Fox back in 2019.
- The JV will be led by 3 CEOs. Kevin Vaz will lead entertainment, Kiran Mani will lead digital, and Sanjog Gupta will lead sports.
- Nita Ambani will serve as the chair with Uday Shankar serving as vice chair.
What They’re Saying:
- Bob Iger, CEO of The Walt Disney Company: “This is an exciting moment for our two companies, as well as for India’s consumers, as we create one of the top entertainment entities in the country through this joint venture. By joining forces with Reliance, we are able to expand our presence in this important media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services.”
- Mukesh Ambani, Chairman and Managing Director of Reliance Industries: “With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer will ensure unparalleled content choices at affordable prices for Indian viewers. I am very excited about the JV’s future and wish it all the success.”
- Uday Shankar, Vice Chair of the JV: “James [Murdoch] and I are excited to be partners in this journey to disrupt the media and entertainment industry in India. The new organization is committed to deliver an unprecedented level of creativity, disruption and new age consumer experience. As media consumption continues to move to an integrated TV-digital ecosystem, the merger of Viacom18 and Star India offers a unique opportunity to reorient the industry to better serve diverse cohorts of consumers across the country. Together, we aim to build India’s largest integrated media platform which will deliver unparalleled experiences in innovative and exciting ways.”
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