Reliance Industries and Walt Disney announce joint venture, RIL to invest Rs 11,500 crore

Mukesh Ambani-led Reliance Industries and Walt Disney have announced the signing of binding definitive agreements to establish a joint venture that will integrate the operations of Viacom18 and Star India.

Reliance Industries has committed to investing 11,500 crore rupees in the joint venture to fuel its growth. Under the terms of the agreement, the media division of Viacom18 will be amalgamated into Star India Pvt Ltd through a court-approved scheme of arrangement.

Reliance and its affiliates will hold 63.16 per cent in the combined entity while Disney will hold the remaining 36.84 per cent, the companies said in a statement.

The company further said that Nita Ambani will serve as the Chairperson of the joint venture, with Uday Shankar appointed as Vice Chairperson.

The transaction values the JV at Rs 70,352 crore ($8.5 billion) on a post-money basis, excluding synergies. Post completion of the above steps, the JV will be controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.

Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, said: “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.”

The joint venture will be exclusively authorized to distribute Disney films and productions in India, along with access to over 30,000 Disney content assets. This will offer a comprehensive range of entertainment choices for Indian consumers.

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