A day after antitrust regulator CCI cleared a mega merger between Reliance India and Walt Disney Co.’s media assets, Reliance Chairman Mukesh Ambani on Thursday said the deal marks the beginning of a new era in India’s entertainment industry. Welcoming Disney into the Reliance family, Ambani said the expanded media business would be a valuable growth hub in the Reliance ecosystem, just like Jio and its retail business.
“So let me talk about our partnership with Disney. This is the beginning of a new era in the Indian entertainment industry. We are combining content creation with digital streaming,” he said at RIL’s annual general meeting.
The Competition Commission of India on Wednesday approved the merger of Reliance Industries Ltd and Walt Disney Co’s media assets, creating India’s largest media empire worth over Rs 7 trillion.
Reliance, through its holding company Network 18, owns the TV18 news channel as well as a number of entertainment channels (under the ‘Colors’ brand) and sports channels.
“We will deliver world-class digital entertainment across all segments,” Ambani said, adding, “We will cater to every consumer preference. We are excited about this partnership.”
The joint venture will include two leading OTT streaming platforms, Disney Hotstar and Jio Cinema.
“We are combining content creation with digital streaming,” Ambani said, adding, “Our digital-first approach will offer unmatched content at affordable prices.”
The deal, announced six months ago, was approved after antitrust regulators scrutinized it and both parties proposed certain amendments to the original deal structure.
The deal will give Mukesh Ambani’s Reliance Industries (RIL) and its affiliates a 63.16% stake in the combined company, which includes two streaming services and 120 TV channels.
Walt Disney will hold the remaining 36.84% stake in the new combined company, making it India’s largest media house.
Reliance Industries has also agreed to invest nearly 11,500 crore rupees in the joint venture to better position it to take on rivals such as Sony and Netflix.
Nita Ambani, billionaire and wife of Rail India chairman Mukesh Ambani, will head the joint venture, with Uday Shankar as vice-chairman.
The CCI had approved the “proposed merger of Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited (SIPL) and Star Television Productions Limited (STPL), subject to voluntary modifications.”
Viacom18 is part of the RIL Group, while SIPL is wholly owned by The Walt Disney Company. STPL, a company incorporated in the British Virgin Islands, is indirectly owned by Walt Disney.
Published on 29 Aug 2024, 5:04 PM IST
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