Reliance-Disney merger to be completed by Q3 FY25
What's the story
The merger of Reliance Industries's media assets with Walt Disney's India business is on track, with an anticipated completion by the end of the third quarter of fiscal year 2025. The Mukesh Ambani-led Reliance group revealed this in a recent regulatory filing. The Competition Commission of India (CCI) has already approved the merger of Viacom 18 and Star India, while the National Company Law Tribunal (NCLT) has sanctioned the scheme.
Merger approval
NCLT approves merger of Reliance's media entities
The NCLT has approved the merger of Reliance group's TV18 Broadcast and E18 with Network18 Media & Investments, effective October 3. Further, on September 27, the Indian government greenlit the transfer of licenses for non-news and current affairs TV channels held by Reliance Industries's media entities to Star India. Both parties are now in the final stages of the merger, making adjustments to comply with CCI directives.
Scheme details
Merger scheme involves transfer of media operations
The merger scheme, approved by the NCLT on August 30, involves the transfer of media operations from Viacom18 and JioCinema to Digital18. This will be followed by the demerger and transfer of V18 Undertaking from Digital18 to Star India. The merger will create India's largest media conglomerate, valued at over ₹70,000 crore (approximately $8.5 billion). The combined entity will hold two streaming services and 120 television channels.
Investment plans
Reliance Industries to invest ₹11,500 crore in joint venture
While Reliance Industries and its affiliates will hold 63.16% of the new entity, Walt Disney will own the remaining 36.84%. To make it more competitive against the likes of Sony and Netflix, Reliance Industries has promised to pump in nearly ₹11,500 crore (about $1.4 billion) into the joint venture. Nita Ambani, wife of Mukesh Ambani, will head the joint venture with Uday Shankar as vice-chairperson.