Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18), and The Walt Disney Company (NYSE: DIS) have announced a significant partnership aimed at consolidating their digital streaming and television assets in India. The joint venture (JV) will integrate the operations of Viacom18 and Star India, with Reliance committing ₹11,500 crore to support its growth strategy.

Under the agreements, Viacom18’s media business will merge into Star India Private Limited (SIPL) through a court-approved arrangement. Reliance’s substantial investment at closing, approximately ₹11,500 crore or US$ 1.4 billion, underscores its commitment to the JV’s success. The total value of the JV stands at ₹70,352 crore or US$ 8.5 billion post-transaction, excluding synergies. Following completion, Reliance will control the JV, holding a 16.34% stake, while Viacom18 and Disney will own 46.82% and 36.84%, respectively.

Disney may contribute additional media assets to the JV, pending regulatory and third-party approvals. Mrs. Nita M. Ambani will serve as Chairperson, with Mr. Uday Shankar appointed as Vice Chairperson, providing strategic direction.

The JV aims to become a prominent player in TV and digital streaming for entertainment and sports content in India, leveraging iconic brands such as Colors, StarPlus, StarGOLD, Star Sports, and Sports18, alongside JioCinema and Hotstar. With a combined audience of over 750 million in India and beyond, the JV intends to lead the digital transformation of India’s media and entertainment industry, with the aim of offering diverse and high-quality content accessible anytime, anywhere.

The partnership seeks to enhance the digital entertainment experience by combining Viacom18 and Star India’s expertise, technology, and content libraries. This includes Disney’s acclaimed films and shows, promising a rich and accessible entertainment offering for Indian audiences worldwide.

Furthermore, the JV will have exclusive rights to distribute Disney content in India, boasting a license to over 30,000 Disney assets. Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, expressed enthusiasm about the agreement, emphasizing the joint venture’s potential to deliver unparalleled content at affordable prices.

Bob Iger, CEO of The Walt Disney Company, highlighted the immense opportunities in India, foreseeing long-term value creation through the joint venture. Uday Shankar, Co-founder of Bodhi Tree Systems, emphasized the commitment to delivering exceptional value to audiences, advertisers, and partners, while shaping the future of entertainment in India.

The transaction is subject to regulatory and shareholder approvals and is expected to be completed by the last quarter of Calendar Year 2024 or the first quarter of Calendar Year 2025.