Disney and Reliance to form US$8.5b media JV in India
Make us a preferred source
Make us a preferred source on Google
The news: India’s Reliance Industries and Walt Disney have announced a merger of their India TV and streaming assets, to create an USD8.5 billion ($13.9 billion) entertainment giant.
The numbers: On completion, the JV will be controlled by Reliance who will own 16.45% of shares while Viacom18 will hold 46.82%. Disney will hold the remaining 36.84% of shares. Reliance will invest USD1.4 billion into the JV for its growth strategy.
The context: The companies announced that the joint venture will combine the Viacom18 and Star India businesses, and will bring together over 750 million viewers across India while also catering to the international Indian diaspora. The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a license to more than 30,000 Disney content assets.
Disney has struggled with its presence in India. In 2019 Disney acquired the channel Hotstar along with its Indian Premier League (IPL) cricket rights for USD71 billion, only for Reliance’s Mukesh Ambani (Asia’s richest man) to secure the IPL rights in 2022 for USD2.9 billion. Reliance streamed the cricket matches for free, and Disney lost over 20 million Indian subscribers as a result.
What they said: Bob Iger, CEO of The Walt Disney Company said: “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company.”
The sources: The Walt Disney Company Press Release, Reuters
