Reliance Industries Limited (RIL) has informed that the Ministry of Information and Broadcasting, Government of India, has allowed the transfer of licenses for non-news and current affairs television channels from Viacom18 Media Private Limited to Star India Private Limited, bound by the conditions laid by Competition Commission of India (CCI).
It is a part of the strategic joint venture between Industries Ltd and Disney.
Reliance Industries Ltd stated that the government has permitted the transfer via an order dated September 27, 2024.
In a press release titled “Reliance and Disney Announce Strategic Joint Venture to Bring Together the Most Compelling and Engaging Entertainment Brands in India,” the companies informed Reliance injected Rs 11,500 crore in the venture.
In the joint venture, RIL would own 16.34%, while 46.82% would rest with Viacom18 and the remaining 36.84% with Disney.
Viacom18 is the holding company that shelters the media and entertainment business of Reliance Industries and Bodhi Tree Systems.
As per the disclosure by Reliance Industries on February 28, 2024, Viacom18, a subsidiary of the company, would join forces with Star India, Disney’s Indian unit, in a bid to become the largest television and digital streaming entity in India.
Competition regulator CCI gave a nod to a Rs 70,350-crore merger between Reliance Industries and Disney India media assets on August 28, 2024, and the Mumbai bench of the National Company Law Tribunal (NCLT) gave clearance to the Viacom18-Star India deal on August 30.
The newly formed Reliance-Disney will directly give a tough fight to Japanese Sony, the US Netflix, and Amazon, with 120 TV channels and two streaming services.
The board will have ten members, with 5 members nominated by RIL, 3 from Disney, and 2 independent directors.
The merger is likely to take its final shape in the last quarter of 2024 or the first quarter of 2025.
Nita Ambani will act as the Chairperson of the merged entity, with former Walt Disney executive Uday Shankar assuming the role of Vice Chairperson.
In the February 2024 press statement, both companies said, the joint venture aims to take a domineering character in television and digital streaming, with a combined viewership of over 750 million across India and the global Indian diaspora.
Its entertainment portfolio includes Colors, StarPlus, and Hotstar. The venture is assured to offer consumers a diverse range of entertainment and sports content.
Mukesh Ambani Calls Disney Deal “Beginning of a New Era in India’s Entertainment Industry“
At the 47th annual general meeting of Reliance Industries Ltd on August 29, RIL chairman Mukesh Ambani called this deal the “beginning of a new era in India’s entertainment industry“.
“Let us now talk about our partnership with Disney. This marks the beginning of a new era in India’s entertainment industry. We are combining content creation with digital streaming,” he said at the RIL AGM.
“…We are combining content creation with digital streaming,” Ambani said, underscoring its offering at an affordable cost.