Reliance has been looking to close the deal with Disney ever since they have decided to merge Viacom18, their media network with Disney’s Star India network and Hotstar. Many business experts have been looking forward to this merger deal to be announced from almost an year. Finally, they have jointly made the announcement about the deal.
For now they have emerged at a binding agreement that will create a huge Rs.70,352 crores or US$8.5 Billion worth media empire. A total of 120 media channels will be operated under one umbrella by this new media conglomerate that will be born out of this merger. Reliance and Walt Disney have come to this agreement after going through the conditions put forth by court for such a huge deal to go through.
Walt Disney wants to bring few more channels under this umbrella but it is subjected to boards approval. Reliance will head the operations with Nita Ambani has chairperson and Disney Star India’s Uday Shankar as Vice Chairman. Viacom18 media operations will come under Disney Star India umbrella and Reliance will invest Rs.11,500 crores into this media organisation that will be established by this merger.
Viacom18 will have 46.82% stake in the ownership with Disney having a 36.84% along with Reliance Industries Limited, RIL, having a 16.34% stake. This will also merge the operations of Jio Cinema and Disney Plus Hotstar but both will continue to be separate OTT platforms. Well, like Jio, this merger will also end competition in Media broadcasting industry in India, for sure.