A day after India’s anti-trust regulator, the Competition Commission of India (CCI), greenlit the landmark merger between Reliance Industries Limited (RIL) and The Walt Disney Company’s media assets, Reliance Chairman Mukesh Ambani hailed the deal as the beginning of a new era in the country’s entertainment industry. This merger, valued at over Rs 70,000 crore, positions Reliance at the forefront of the media and entertainment space, creating India’s largest media conglomerate.
Speaking at the Reliance Industries Limited Annual General Meeting (AGM) on Thursday, Ambani welcomed Disney into the Reliance family, underscoring how this new partnership will echo the success of Jio and Reliance’s retail business. “This merger marks the beginning of a new era in India’s entertainment industry. We are combining content creation with digital streaming to deliver world-class entertainment across the spectrum,” Ambani said.
Expanding Reliance’s Media Ecosystem
The merger was approved by the CCI after months of scrutiny and some voluntary modifications made by both parties. Under the terms of the deal, Reliance, through its holding firm Network18, will own a 63.16% stake in the joint venture, while The Walt Disney Company will hold the remaining 36.84%. Network18 already owns a wide range of media assets, including TV18 news channels and entertainment properties such as the popular ‘Colors’ brand and several sports channels.
Ambani expressed excitement about the opportunities this merger presents, noting that the expanded media business would be a major growth center in Reliance’s diverse portfolio. “Just like Jio revolutionized telecommunications and our retail business became a vital part of India’s economy, our expanded media business will be an invaluable growth engine in the Reliance ecosystem,” Ambani said.
The joint venture will also include two of India’s leading over-the-top (OTT) streaming platforms—Disney Hotstar and JioCinema—cementing its leadership in the fast-growing digital streaming space. “Our digital-first approach will deliver unparalleled content at affordable prices, catering to every consumer’s taste,” Ambani stated. He emphasized that the combination of content creation and digital streaming will provide a comprehensive entertainment offering to millions of Indian consumers.
Strategic Positioning in the Global Market
The partnership comes at a time when competition in the global streaming market is intensifying, with heavyweights like Netflix, Amazon Prime, and Sony fighting for market share. To strengthen the joint entity’s competitive position, Reliance has committed to investing nearly Rs 11,500 crore into the venture, providing the necessary financial muscle to challenge its rivals both domestically and internationally.
Nita Ambani, wife of Mukesh Ambani, will chair the newly formed entity, while industry veteran Uday Shankar, former chairman of Star and Disney India, will serve as the Vice Chairperson. This leadership duo, combined with the robust assets of both Disney and Reliance, is expected to lead the company toward an ambitious trajectory.
Disney and Reliance: A Formidable Alliance
Welcoming Disney’s entry into the Reliance fold, Ambani highlighted the strength of the new partnership. “We are excited about this collaboration and the opportunities it brings. Together, we will provide world-class digital entertainment that is unmatched in quality and scale,” he said. The expanded media empire will offer over 120 television channels, cutting across various genres and catering to a broad spectrum of audiences, from news and entertainment to sports.
The merger has been met with widespread industry anticipation as it creates a media powerhouse in a rapidly growing market. India, with its large and young population, is seen as one of the most lucrative entertainment markets in the world, and this partnership positions the new entity to capitalize on the growing demand for digital content consumption.
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A New Phase for India’s Entertainment Landscape
The deal, announced six months ago, faced close scrutiny from the CCI due to the size and scope of the combined entity. However, after both Disney and Reliance proposed changes to the original transaction structure, the regulator granted its approval. The CCI stated that the “proposed combination involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited (SIPL), and Star Television Productions Limited (STPL), was cleared subject to compliance with voluntary modifications.”
Viacom18, a part of the Reliance group, and SIPL, which is wholly owned by The Walt Disney Company, will merge with their combined assets to form a new entity that can leverage the synergies of traditional media and digital platforms. STPL, a company registered in the British Virgin Islands, is indirectly owned by Disney, and will also be a part of this massive media collaboration.
The merger ushers in a new chapter for the entertainment industry in India, marking a significant milestone in the evolution of media and content creation. By uniting two global entertainment giants, Reliance and Disney aim to deliver cutting-edge content to millions of viewers, shaping the future of entertainment in India and beyond.
