NCLT admits merger scheme between Viacom18 and Disney Star

Delhi: The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted the merger scheme between Reliance Industries’s (RIL) Viacom18, its wholly owned subsidiary Digital18 and The Walt Disney Company’s Star India.

This marks the first step towards the completion of the merger deal between Reliance Industries’ Viacom18 and The Walt Disney Company’s Star India, which will form a Rs 70,000 crore behemoth.

On February 28, 2024, The Walt Disney Company sold its India business to Mukesh Ambani’s Reliance Industries at a $3.5 billion valuation, which it bought from Rupert Murdoch for $14 billion seven years ago.

According to the NCLT order, Viacom18 proposed an internal restructuring, aiming to transfer its diverse businesses to its wholly-owned subsidiary, Digital18. This move positions Viacom18 as the holding company for its various business endeavours.

Highlighting Viacom18’s rationale behind this move, the order read, “This restructuring is with a view to bring operational efficiencies and facilitate future growth and diversification of respective businesses including facilitation of business segment specific strategic partnerships or investments for businesses like sports, general entertainment, digital content streaming, etc.”

It further read, “The proposed combination will result in cost reduction due to synergies, thus creating value for shareholders of Viacom18, RIL group and Disney group.”

The NCLT has directed the companies to convene the meeting of its secured and unsecured creditors over the merger on June 12, 2024.