Our media business will be an invaluable growth centre: Mukesh Ambani on Disney deal

New Delhi: At the Reliance Industries AGM, Mukesh Ambani, Chairman of Reliance Industries, indicated that digital streaming would become the key growth driver for his media and entertainment business, primarily in the wake of the Disney Star-Viacom18 merger.

“The merger marks the beginning of a new era in India's entertainment industry. We are combining content creation with a digital-first approach to deliver unparalleled content at affordable prices,” Ambani stated. 

Expressing his enthusiasm about the combined entity’s potential to reshape the entertainment landscape, he added, “We will cater to every consumer's taste, offering world-class digital entertainment across the spectrum.”

Ambani highlighted that this strategic partnership would benefit from Reliance's existing strength in telecommunications and retail, both of which have seen tremendous growth. 

“Just like Jio and Retail have expanded, our media business will be an invaluable growth centre within the Reliance ecosystem,” he emphasised. 

Welcoming Disney into the Reliance family, Ambani expressed his excitement about the synergies this partnership will create. “We are excited about this partnership and the opportunities it presents. Together, we aim to revolutionise the way entertainment is consumed, ensuring access to high-quality content for all,” he added.

On August 28, 2024, the Competition Commission of India cleared the proposed combination involving Reliance Industries, Viacom18 Media, Digital18 Media, Star India and Star Television Productions, subject to the compliance of voluntary modifications.

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.

After the NCLT approval, experts believe that the merger will happen at the latest by January 2025.

As part of the transaction, the media undertaking of Viacom18 will be merged into Star India through a court-approved scheme of arrangement. In addition, RIL has agreed to invest Rs 115 billion into the JV valued at Rs 704 billion. 

Post completion of the above steps, the JV will be controlled by RIL which would have a 53% stake through cash infusion and its subsidiaries, whereas a 36.8% stake will be held by Disney.  Disney may also contribute certain additional media assets to the JV, subject to regulatory and third-party approvals. 

The merger will create a large media juggernaut with 108+ channels (Star India has 70+ TV channels in 8 languages, whereas Viacom has 38 TV channels in 8 languages), two large OTT apps (Jio Cinema and Hotstar) and two film studios (one each of Reliance and Disney India).