Reliance a ‘terrific’ company, they will manage India business: Disney

New Delhi: Following the merger of its India business with Reliance, the Walt Disney Company on Thursday expressed excitement about the deal with the ‘terrific’ company.

Responding to a question in the earnings call, Hugh Johnston, Senior Executive Vice President and Chief Financial Officer, said, “We're very, very excited about the deal with Reliance. They're a terrific company with a huge presence in India. Going forward, we will have a percentage ownership in the high 30s. And obviously, the Reliance people with their share of ownership will manage the business.”

When asked what the business will look like for you in India, Johnston said, “In terms of the specific implications on Disney's financials, we did anticipate closing. We've got it included in the guidance.”

Reliance Industries Limited, Viacom 18 Media Private Limited and The Walt Disney Company on Thursday announced that the merger of the media and JioCinema businesses of Viacom18 into Star India Private Limited has become effective.

The transaction values the JV at Rs 70,352 crore (~US$ 8.5 billion) on a post-money basis, excluding synergies. At the closing of the transactions, the JV called JioStar is controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.

In a separate transaction, RIL bought out Paramount Global’s entire stake of 13.01% in Viacom18 for Rs 4,286 crore. As a result, Viacom18 is owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd. and 15.97% by Bodhi Tree Systems, on a fully diluted basis.