RIL, Disney ink pact for $8.5 bn media giant

RIL to invest 1.4 bn in JV; Nita Ambani named chairperson, Uday Shankar vice-chairperson

- DEV CHATTERJEE

Mukesh Reliance Viacom18 M Ambani-owned Industries, Media, and The Walt Disney Corporation on Wednesday entered an agreement to form a joint venture that would merge the television and digital streaming businesses of Viacom18 and Star India and create an entertainment giant in India. A joint statement pointed out that the value of the JV at ₹ 70,352 crore ($8.5 billion) was on a post-money basis, excluding synergies.

As part of the transaction, the media undertaking of Viacom18, a RIL group company, will be merged into Star India Private, a Disney-owned firm, through a court-approved scheme of arrangement. RIL would invest 11,500 crore ($1.4 billion) into the JV to fund its growth strategy post-closing. Nita M Ambani will be the chairperson of the venture while media veteran Uday Shankar will be the vice-chairperson.

The JV will be controlled by RIL, owned 16.34 per cent by RIL directly and another 46.82 per cent by Viacom18. Disney will own the remaining 36.84 per cent.

Mukesh Ambani, RIL chairman and MD, called it a landmark agreement heralding a new era in the Indian entertainment industry. "We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation," he said. We welcome Disney as a key partner of Reliance group," Ambani further said.