The companies will be combining their respective Star India and Viacom18 units into the newly created Star India joint venture, valued at roughly $8.5 billion on a post-money basis, excluding synergies.
Disney and Reliance have signed an agreement to merge their respective digital streaming and television assets in India, heralding the creation of “a world-class leader across entertainment and sports,” the companies announced.
The deal, valued at ₹70,352 crore ($8.5bn), excluding synergies, will see Disney holding approximately 37% of the joint venture. This collaboration will combine the businesses of Mumbai-based Reliance Industries, its owned and controlled Viacom 18 Media, and Star India, with the media undertaking of Viacom18 merging into Star India Private.
Nita Ambani will serve as the Chairperson of the joint venture, with Uday Shankar as vice chair, providing strategic guidance. The venture will bring together a plethora of assets across entertainment and sports, including popular channels like Colors, StarPlus, StarGOLD, and Star Sports, alongside digital platforms such as JioCinema and Hotstar. With over 750m viewers across India and catering to the global Indian diaspora, the joint venture aims to lead the digital transformation of the media and entertainment industry in India.
Speaking about the deal, Bob Iger, Disney CEO, said: “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company.”
Mukesh Ambani, Chair and Managing Director of Reliance, hailed the agreement as a “landmark” that ushers in a new era in the Indian entertainment industry. He emphasised the combined resources, creative prowess, and market insights that the collaboration will leverage to deliver unparalleled content at affordable prices to audiences nationwide.
The transaction, which has been subject to speculation for months, is anticipated to close in late 2024 or early 2025. Pending the close, Star India will be classified as “held-for-sale,” leading to non-cash pre-tax impairment charges of $1.8bn to $2.4bn in Disney’s current quarter.
This deal comes amidst Disney’s ongoing proxy fight with two activist investors, Trian Group’s Nelson Peltz and Blackwells Capital, who are both fielding board candidates ahead of Disney’s April 3 annual meeting.
Reliance, India’s largest private sector company, boasts a diverse portfolio spanning oil and gas exploration, refining, retail, renewables, and digital services, positioning the joint venture for substantial growth and influence in the Indian market and beyond.
