Reliance, with its media portfolio Viacom18, and Disney are combining their media operations in India, forming the largest media entity in the South Asian market. Reliance will have a 16.34% stake in the joint venture, valued at $8.5 billion. Disney will own 36.84% while Reliance-backed Viacom18 will hold a 46.82% stake, supported by Paramount Global and James Murdoch’s Bodhi Tree.
India’s most valuable company, Reliance, aims to expand its presence in the rapidly growing Indian market by merging its media assets with Disney India. Reliance, holding about 75% of Viacom18, plans to invest $1.4 billion in the joint venture for growth purposes.
For Disney, the deal marks a significant move. Initially valuing its Indian business at around $16 billion, Disney’s acquisition of Hotstar through Fox allowed it to penetrate various Southeast Asian streaming markets aggressively.
In addition, Disney disclosed in an SEC filing that the joint venture would incur a non-cash pre-tax impairment of $1.8 billion to $2.4 billion, with a portion reflecting the write-down of Star India’s net assets this quarter.
Media Partners Asia’s Vice President, Mihir Shah, noted that the merger of Reliance’s Viacom18 and Disney’s Star India would enhance scale, profitability, and competitiveness in the TV and streaming video landscape.
The collaboration also brings together two prominent Indian streaming services, JioCinema and Disney+Hotstar. The joint venture includes access to Disney’s TV channels, exclusive rights to Disney’s content in India, and 30,000 additional assets.
The combined unit is poised to reach over 750 million viewers in India, arriving at a time when major media conglomerates face challenges in the Indian market. Sony recently terminated its merger with Zee Entertainment, which would have created a $10 billion media giant in the South Asian market.
Reliance Chairman Mukesh Ambani, Asia’s wealthiest individual, views the Disney deal as a significant milestone in the Indian entertainment sector. He expressed enthusiasm about the strategic partnership to deliver high-quality content at competitive prices nationwide.
Reliance’s media empire, before the deal with Disney. (Data and image: JP Morgan)
The merger between Hotstar and JioCinema, which attracted top Disney talent to bolster its platform, followed a fierce competition. Viacom18 also outbid Disney with a $3 billion offer for five-year streaming rights to India’s renowned cricket tournament, the Indian Premier League, breaking previous viewing records set by Hotstar within a year. (Disney paid an equal amount for TV rights.)
Disney CEO Bob Iger believes the joint venture will deliver lasting value to the company, expressing confidence in Reliance’s understanding of the Indian market and consumers. Together, they aim to establish one of India’s premier media companies, offering a diverse range of digital services, entertainment, and sports content to consumers.
The merger reunites former Star India CEO Uday Shankar and James Murdoch with the business they previously nurtured over a decade. Shankar, who had left Star India post disputes in 2020, and Murdoch launched Bodhi Tree, an India media investment entity backed by $1.7 billion from the Qatar Investment Authority, with over $500 million invested in Viacom18. Shankar now returns as the vice chair of the joint entity’s board.
Regulatory and shareholder approval is required for the merger, which the companies anticipate completing by the end of March 2025.
