Walt Disney and Reliance Industries announced Thursday the completion of the $8.5 billion merger of their Indian media assets after securing relevant regulatory approvals.
Joint venture
The joint venture (JV) is controlled by Reliance, which holds a 16.34% stake, while its majority-owned Viacom 18 Media has a 46.82% stake. Disney retains a 36.84% stake, according to a joint statement.
The JV consists of three separate divisions, each with its own CEO. The newly formed divisions include entertainment, which includes Reliance’s Colors TV channels and Disney’s Star; the digital division, which includes online streaming platforms Hotstar and JioCinema; and the sports division.
The entertainment division will be led by Kevin Vaz, who has been leading Viacom 18 Media, while former Google executive Kiran Mani, who has been leading JioCinema, will take charge of the digital organization. Sanjog Gupta, the head of sports at Disney’s Indian media operations, will lead the JV’s sports division.
The transaction was greenlighted by the Competition Commission of India (CCI) in August, and it has also secured approvals from anti-trust authorities in the EU, China, Turkey, South Korea, and Ukraine.
Billionaire Mukesh Ambani’s wife, Nita Ambani, will serve as the chairperson of the JV.
Media giant
The merged entity operates over 100 television channels and annually produces over 30,000 hours of TV entertainment content. JioCinema and Hotstar streaming platforms have an aggregate subscription base of more than 50 million, while it also holds sports rights across cricket, football, and other sports.
The JV will be one of the biggest media and entertainment companies in the South Asian country, with around $3.1 billion in pro forma combined revenue for the fiscal year ended March.
Forbes valuation
Ambani, the chairman and managing director of Reliance Industries, boasts a net worth of $99.7 billion as of November 14, making him Asia’s richest and the world’s 17th wealthiest person, according to Forbes estimates.
