The much-anticipated merger between Mukesh Ambani-led Reliance Industries’ media unit Viacom18 and Disney’s Star India has cleared another major hurdle. The Ministry of Information and Broadcasting has approved the transfer of licenses for non-news and current affairs TV channels from Viacom18 to Star India. This approval, granted on September 27, 2024, marks a significant step towards finalizing the massive merger between the two media giants.
Approval From Key Authorities
This transfer of licenses follows the necessary clearances from both the Competition Commission of India (CCI) and the National Company Law Tribunal (NCLT). While the Ministry’s approval comes with conditions set by the CCI, the merger is now entering its final stages. On August 30, the NCLT gave the green light for merging Viacom18 Media and Digital18 Media, which hold Reliance’s media and entertainment assets, with Star India.
As part of this merger, Viacom18’s television channels, as well as Jio Cinema’s media operations, will move to Digital18, a subsidiary of Viacom18. The result will be a powerful media entity combining the resources of Reliance and The Walt Disney Company.
Formation of the Largest Media Group
Once the merger is fully completed, the combined media entity is set to become India’s largest media group. The new conglomerate will boast a valuation of more than ₹70,000 crore, surpassing other major players in the Indian media landscape.
Reliance Industries and its partners will control 63.16% of the merged entity, which will operate 120 television channels and two prominent streaming platforms. The Walt Disney Company will retain a 36.84% stake in the newly-formed company, further solidifying their presence in the Indian entertainment market.
Investment Plans and Future Leadership
As part of the merger deal, Reliance Industries has committed to invest ₹11,500 crore in the joint venture to strengthen its position against competitors like Netflix and Sony. The merger also brings together prominent leaders to guide the new entity. Nita Ambani, wife of Reliance Chairman Mukesh Ambani, will head the joint venture, while former Star and Disney India chairman Uday Shankar will take on the role of vice-chairperson.
This powerful partnership between Reliance and Disney is expected to reshape the Indian media and entertainment industry, combining strong television networks with popular digital platforms like Jio Cinema.
