Reliance and Disney merge their India media businesses to establish an $8.5 billion joint venture

The merger between Reliance, Viacom18, and Disney’s media businesses in India represents a significant consolidation in the South Asian market, creating the largest media entity in the region. Reliance will hold a 16.34% stake in the joint venture, valued at $8.5 billion, while Disney will own 36.84%. Viacom18, backed by Reliance as well as Paramount Global and Bodhi Tree, will have a majority stake of 46.82%.

For Reliance, India’s most valuable firm, the merger presents an opportunity to strengthen its presence in the rapidly growing Indian market by combining its media assets with Disney India. Reliance, which already holds a substantial stake in Viacom18, intends to invest $1.4 billion into the joint venture to support its growth strategy.

However, for Disney, the deal may come with mixed feelings. While it signifies a significant move in the Indian media landscape, Disney once valued its India business at around $16 billion. The inclusion of Hotstar, acquired as part of Disney’s purchase of Fox, enabled Disney to expand aggressively into various Southeast Asian streaming markets.

The merger of Reliance’s Viacom18 and Disney’s Star India marks a significant development in the Indian media landscape, creating a formidable entity with enhanced scale, profitability, and competitiveness in both traditional TV and streaming video markets, according to Mihir Shah, Vice President of Media Partners Asia.

By bringing together two leading Indian streamers, JioCinema and Disney+Hotstar, the merger provides access to a vast array of content, including Disney’s extensive library of movies and productions. Additionally, the joint venture will control numerous TV channels owned by Disney and hold exclusive rights to its content in India, along with access to Disney’s vast portfolio of assets.

With a combined reach of over 750 million viewers across India, the new venture is poised to capitalize on the growing demand for entertainment content in the region. This strategic move comes at a time when major media conglomerates are facing challenges in India, as evidenced by Sony’s recent decision to call off its merger with Zee Entertainment.

Reliance chairman Mukesh Ambani hailed the agreement with Disney as a landmark deal that ushers in a new era in the Indian entertainment industry. As Asia’s richest person, Ambani’s endorsement underscores the significance of the partnership and its potential impact on the Indian media landscape.