“A landmark agreement that heralds a new era in the Indian entertainment industry.”

Reliance Industries and The Walt Disney Company have formally signed an agreement on February 28, forming a joint venture (JV) of their India TV and streaming media assets and establishing a Goliathan entity valued at Rs 70,352 crore ($ 8.5 billion).

As per the agreement, Reliance’s Viacom18 is merging with Disney’s Star India through a court approved scheme of arrangement. Reliance Industries will own 16.3% of the merged entity, Viacom18 will own 46.8% and Disney 36.8%.

Nita Ambani will head the merged entity as Chairperson, with former Disney India chair Uday Shankar is set as vice chair and strategic advisor. The Reliance duo will invest $1.4 billion into the joint venture.

What does it mean?

This new agreement will have an electric effect on Indian media across the world, creating a vast entity spanning television, digital, and sports, backed by Jio’s extensive reach, Reliance’s substantial resources, and Disney’s extensive global offerings.

• The JV will amalgamate media assets spanning entertainment (e.g. Colors, StarPlus, StarGOLD) and sports (e.g. Star Sports and Sports18).
• Access to events will be provided across television and digital platforms via JioCinema and Hotstar.
• The JV is set to reach over 750 million viewers in India and will cater to the global Indian diaspora.
• Exclusive rights to distribute Disney films and productions in India will be granted, along with a licence to more than 30,000 Disney content assets.

Bob Iger, CEO of The Walt Disney Company, said: “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide 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.”

Mukesh D. Ambani, chair and MD of Reliance Industries, added: “This is a landmark agreement that heralds a new era in the Indian entertainment industry. 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.”

This deal comes on the heels of Disney’s long-drawn struggle to draw users from a bleeding India streaming business, and financial strains caused by billions of dollars in Indian cricket rights payments. Thus, the agreement is an exceptionally valuable cash cushion and guarantee of success. For Ambani, the deal will help Reliance eclipse rivals like Japan’s Sony, India’s Zee Entertainment, and Netflix.

Timeline: The transaction will be subject to regulatory, shareholder and other customary approvals. The deal is expected to be completed by the fourth quarter of this year or the first quarter of 2025.