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Disney and Reliance Entertainment have merged. Both the companies announced the completion of the merger today i.e. on November 14. Now apart from being India’s largest entertainment company, it is also a sports powerhouse.
After the approval of Competition Commission and other regulatory authorities, the merger of Reliance’s subsidiary company Viacom-18 and Disney India has become effective. Reliance has invested Rs 11,500 crore for this joint venture.
Both the companies said in their joint statement that this deal has been completed on post money basis for Rs 70,352 crore. Reliance will hold 63.16% stake and Disney will hold 36.84% stake in the company formed after the merger. Nita Ambani will be its chairperson.
Three CEOs will lead the business
The companies said that this joint venture will be led by three CEOs. Kevin Vaz will head the entertainment organization. Kiran Mani will take charge of the digital organization. Sanjog Gupta will lead the sports organization.
Reliance Industries Chairman Mukesh Ambani said, “With this joint venture, the Indian media and entertainment industry is entering a transformational era. I am very excited about the future of the joint venture and wish it every success.”
Joint Venture has 2 digital platforms
In this mega-merger, 80 channels of Disney Star and 40 channels of Reliance Viacom18 will be added. That means, there will be a total of 120 channels. However, some of these channels can be closed. Both also have OTT apps – Disney Hotstar and Jio Cinema.
Viacom 18 also has the TV rights for BCCI managed cricket matches, while Disney Star has the TV rights to broadcast IPL till 2027. Reliance has the rights to show IPL on its OTT platform Jio Cinema.
Reliance’s news channels will not be part of the deal as they come under the Network 18 group. The joint venture will also be given exclusive rights to distribute Disney films and productions in India along with licensing of over 30,000 Disney content assets.
