Reliance adds life to Disney India's future with historic merger

Reliance Industries Limited (RIL) and The Walt Disney Company's India arm have announced a groundbreaking merger that will reshape the country's media landscape. The combined entity will offer a rich portfolio of entertainment and sports content. All the media assets from both entertainment and sports domains will be consolidated under one umbrella.

Notably, the joint Vvnture (JV) will cater to over 750 million viewers across the country, as well as the Indian diaspora worldwide. As things stand, RIL has agreed to invest INR 11,500 crore into the JV for its growth strategy. Meanwhile, RIL will be controlling the JV which will own 16.34 per cent stake directly in addition to 46.82 per cent through Viacom18. The remaining 36.84 per cent will be owned by Disney.

As per the official statement, Nita Ambani will serve as the Chairperson of the JV. Former Disney executive Uday Shankar, with his strategic insights, will assume the role of Vice Chairperson. Meanwhile, Reliance Chairman and Managing Director, Mukesh Ambani called it a ‘landmark agreement’ and believes it to be the start of a new era in India’s entertainment industry.

“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,” Ambani said as per The Hindu BusinessLine.

Bob Iger, CEO of The Walt Disney Company, acknowledged India’s status as the world’s most populous market. He highlighted the joint venture’s potential to create long-term value, serving consumers with a broad range of digital services and entertainment offerings.

“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,” Iger said.

Meanwhile, the venture will also hold exclusive rights to distribute Disney films and productions in India.
With access to more than 30,000 Disney content assets, it promises a comprehensive entertainment experience for consumers in the country.