The Indian Media landscape is now set for a seismic shift: in a new development, The Walt Disney Company and Reliance Industries, led by billionaire Mukesh Ambani, has announced a historic agreement to merge their respective media operations in the world’s second-largest internet market. This landmark joint venture has been valued at a staggering $8.5 billion (₹70,352 crore).

The deal is currently subject to regulatory approvals and is expected to finalize in the latter part of the year, or the first quarter of 2025. The announcement proved to have a positive impact on Disney’s stocks – its share price climbed to reach $110.80 on Thursday. The same cannot be said for Reliance, whose share price dropped to reach ₹2,915.

“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.” Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, commented on the matter.

The agreement, announced by Disney and Reliance, entails the integration of Reliance’s Viacom18 Media Pvt. Ltd. with Disney’s Star India, effectively combining their vast media assets and resources. Under the terms of the deal, Reliance will hold a majority stake of 46.82%, granting it operational control, while Disney will retain a significant minority stake of 36.84%. Reliance Industries Limited (RIL) will own the remaining stake of 16.34%. RIL will also be pumping in an additional investment of $1.4 billion (₹11,500 crore) in the venture. Nita Ambani, Mukesh Ambani’s wife, will serve as the Chairperson, while Uday Shankar, formerly the CEO of Star India, will step into the role of Vice Chairperson for the JV.

At a first glance, the merger of these media giants could be harmful for competition in the Indian media landscape, especially since it can lead to market consolidation and potentially limiting consumer choice as a single entity gains significant control over content creation, distribution, and pricing. However, it also creates a formidable media powerhouse with a diverse portfolio of content and services – with access to Disney’s content library and Reliance’s network and resources, the merged entity is well-positioned to capture a larger share of India’s rapidly growing media and entertainment market, and can enhance the overall entertainment experience for Indian audiences (as its diverse offerings cater to various demographics and interests).

For Disney, the merger represents a strategic shift in its approach to the Indian market, allowing it to maintain a significant foothold in one of the world’s fastest-growing entertainment markets. According to reports, viewers can expect access to over 30,000 Disney content assets, including globally renowned films and shows, and the venture will hold exclusive rights to distribute Disney films and productions within the country. And if this is not enough, the extensive content library of the combined entity, encompassing both regional and international offerings, will also be made accessible to audiences beyond India. This extensive selection will be integrated with the existing library of regional and international entertainment offered by Viacom18, including popular sporting events broadcasted through Star Sports and JioCinema.

“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,” Disney CEO Bob Iger added.

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