Deal with Disney marks new era in entertainment industry: Mukesh Ambani | Company News

On Wednesday, India's Competition Commission approved the merger of the media assets of Reliance Industries and The Walt Disney Co. to create the country's largest media empire, valued at over Rs 70,000 crore.

Reliance owns the news channel TV18 as well as numerous entertainment (under the brand “Colors”) and sports channels through its holding company Network 18.

Under the deal, Mukesh Ambani-led Reliance Industries Ltd (RIL) and its subsidiaries will hold 63.16 percent of the merged entity, which will house two streaming services and 120 television channels.

Walt Disney will hold the remaining 36.84 percent stake in the merged company, which will also be India's largest media company.

Reliance Industries has also agreed to invest nearly Rs 11,500 crore in the joint venture to give it the firepower it needs to battle rivals like Sony and Netflix.

Nita Ambani, wife of billionaire and RIL Chairman Mukesh Ambani, will head the joint venture, while Uday Shankar will be vice-chairman.

CCI has approved the “proposed merger of Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited (SIPL) and Star Television Productions Limited (STPL) subject to compliance with voluntary amendments”.

Viacom18 is part of the RIL group and SIPL is a wholly owned subsidiary of The Walt Disney Company. STPL, a company incorporated in the British Virgin Islands, is indirectly owned by The Walt Disney.

First published: August 29, 2024 | 19:02 IS