Reliance Industries Ltd. (RIL), Viacom18, and The Walt Disney Company have officially announced the merger of their media businesses, a move set to reshape India’s entertainment landscape.
The merger combines Viacom18’s media assets, including JioCinema, with Disney’s Star India and Hotstar platforms, creating a massive joint venture (JV) valued at $8.5 billion (INR 70,352 crore) on a post-money basis, excluding synergies.
Under the terms of the deal, Viacom18 will hold the largest stake in the JV, with a 46.82% ownership, while Disney will own 36.84%. Reliance Industries, which has invested $1.4 billion (INR 11,500 crore) into the venture, will hold a 16.34% stake.
The joint entity brings together some of the biggest names in the Indian media and entertainment industry, including Star India, Colors TV, JioCinema, and Disney’s Hotstar.
Leadership Team Appointments
The JV’s leadership will be headed by Nita Ambani as Chairman, with Uday Shankar taking on the role of Vice Chairperson.
Key executives from Viacom18 will spearhead the respective businesses: Kevin Vaz will lead the entertainment division, Kiran Mani will head the digital business, and Sanjog Gupta will oversee the sports arm.
Expansive Media Reach
The combined entity will operate over 100 television channels, producing more than 30,000 hours of content annually.
Additionally, JioCinema and Hotstar, which already have a combined subscriber base of over 50 million, will be central to the JV’s digital push.
Reports earlier suggested that Reliance had considered various strategies for the integration, including merging Disney+ Hotstar with JioCinema or keeping both platforms separate, with one focusing on sports and the other on entertainment.
The JV is expected to generate combined revenue of approximately INR 26,000 crore (around $3.1 billion) for FY24, making it one of the largest media and entertainment entities in India.
Regulatory Approvals and Market Impact
The merger has cleared several regulatory hurdles, receiving approval from the Competition Commission of India (CCI) on August 27 and the National Company Law Tribunal (NCLT) on August 31.
Internationally, the deal has also been greenlit by antitrust authorities in the European Union, China, Turkey, South Korea, and Ukraine, signaling broad acceptance of the merger in global markets.
Ahead of the merger, JioCinema had reportedly frozen its content budget and paused signing new deals with producers, while Disney+ Hotstar saw a number of high-level exits, including Sidharth Shakdher, the company’s Chief Marketing Officer, and Sajith Sivanandan, the Head of Disney+ Hotstar, who both left amid the integration efforts.
A New Era for India’s Media Industry
The merger marks a significant shift in India’s competitive media sector.
By bringing together some of the country’s most prominent TV and digital platforms, the new entity is poised to deliver a vast array of content to Indian consumers across multiple genres, including entertainment, news, and sports.
With the backing of RIL’s resources, Viacom18’s creative expertise, and Disney’s global content, the JV aims to dominate India’s rapidly growing media and entertainment market.
