Walt Disney and Reliance Industries have announced a merger of their Indian TV and streaming businesses, bringing an end to months of speculation. The deal, estimated to be worth $8.5 billion, will see Reliance’s Viacom18 merge with Disney’s Star India. This merger has the potential to reshape the Indian media and entertainment scene, commanding a 40% market share.
Under the agreement, Reliance Industries will own 16.3% of the merged entity, Viacom18 will own 46.8%, and Disney will own 36.8%. The Ambani family will play a significant role in the merged entity, with Nita Ambani serving as chair and Mukesh Ambani’s close associate Uday Shankar as vice chair and strategic advisor.
The merger brings together rival streaming platforms, India’s leading pay-TV platform, and over 100 linear TV channels. This combination has the potential to reach over 750 million viewers across India and cater to the Indian diaspora worldwide. Additionally, the joint venture will have exclusive rights to distribute Disney films and productions in India, providing a wide range of entertainment options for Indian consumers.
However, such a large-scale deal is expected to attract regulatory attention. The companies anticipate completing the deal by the fourth quarter of this year or the first quarter of 2025, subject to regulatory and third-party approvals. Disney may also contribute additional media assets to the joint venture.
Bob Iger, CEO of The Walt Disney Company, expressed excitement about the opportunities this joint venture will provide in the world’s most populous market. He believes that together with Reliance’s deep understanding of the Indian market, they will create one of the country’s leading media companies.
Mukesh Ambani, chair and MD of Reliance Industries, described the agreement as a landmark that heralds a new era in the Indian entertainment industry. He expressed excitement about forming this strategic joint venture, pooling resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation.
Disney’s dominance in the Indian entertainment industry has faced challenges from the Ambani-controlled Viacom18 group and its suite of Jio-branded operations. In 2022, Disney failed to secure the streaming rights for the Indian Premier League cricket tournament, losing tens of millions of users when Jio streamed it for free. With Reliance Industries’ deep pockets, Jio has been able to profit from Hollywood’s consolidation and Wall Street’s drive for financial rectitude.
The creation of this new Indian behemoth follows Sony Group Corporation’s failed attempt to merge its TV and streaming businesses in India with Zee Entertainment Enterprises Limited. The proposed $10 billion deal did not materialize.
Overall, this merger between Walt Disney and Reliance Industries has the potential to reshape the Indian media and entertainment landscape. With a wide range of content offerings and a significant market share, the joint venture aims to cater to the diverse needs of Indian consumers and expand its reach globally.