Mumbai, February 28: Walt Disney, Reliance Industries on Wednesday, February 28, announced to merge their media operations in India. According to the official statement, Nita Ambani, wife of billionaire Mukesh Ambani, will chair Reliance-Disney merged entity. Uday Shankar will be vice chairperson.
"Reliance Industries Limited (RIL), Viacom 18 Media Private Limited and The Walt Disney Company today announced the signing of binding definitive agreements to form a joint venture that will combine the businesses of Viacom18 and Star India. As part of the transaction, the media undertaking of Viacom18 will be merged into Star India Private Limited (SIPL) through a court-approved scheme of arrangement," read the statement.
The joint venture has been valued at Rs 10,352 crore. Reliance and subsidiary will hold 63.16% and Disney 36.84% of the merged entity. Moreover, Reliance will invest Rs 11,500 in the joint venture for its growth strategy. "Disney may also contribute certain media assets to the joint venture, subject to regulatory and third-party approvals," the two companies announced.
Mukesh Ambani, Bob Iger On Merger:
Reliance Industries Chairman Mukesh Ambani called the merge a "landmark agreement that heralds a new era in the Indian entertainment industry". He added: "We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance group."
Disney CEO Bob Iger said the joint venture will provide opportunities to create long-term value for the company. "Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content," he said.
