Reliance Industries Ltd., promoted by billionaire Mukesh Ambani, has sought approval from the Competition Commission of India (CCI) for an $8.5 billion merger between Viacom18 and Star India Pvt. Following the merger, Star India will become a joint venture owned by RIL, Viacom18, and existing subsidiaries of The Walt Disney Company (TWDC), as stated in a notice filed with the CCI on Friday.
The proposed deal aims to merge the entertainment businesses (and certain other identified operations) of Viacom18, a Reliance Industries Ltd. group entity, and SIPL, fully owned by The Walt Disney Company. Post-merger, Reliance and its affiliates will hold a 63.16% stake in the new entity, while Disney will own the remaining 36.84%. Additionally, Reliance has committed to investing approximately Rs 11,500 crore into the joint venture to expand the OTT business.
Reliance Industries Ltd. (RIL) stated in the notice that the proposed transaction would not adversely affect competition in India. To aid the Competition Commission of India’s (CCI) assessment, RIL identified several key markets with significant horizontal overlaps, including licensing of audiovisual content rights, distribution of broadcast TV channels, provision of audiovisual content, and supply of advertising space in India.
Star India Pvt. Ltd. (SIPL) engages in a variety of media activities, such as TV broadcasting, motion pictures, and operating an OTT platform. Viacom18 operates television channels and an OTT platform both in India and globally, and is also involved in the production and distribution of motion pictures.
Reliance and Walt Disney
In February, global media giant Walt Disney Co. and Reliance Industries announced the signing of binding agreements to merge their media operations in India, creating a Rs 70,000 crore conglomerate. Once completed, the merger will form the largest firm in the Indian media and entertainment sector, with over 100 channels in multiple languages, two leading OTT platforms, and a viewer base of 750 million across the country.
Nita Ambani, wife of Reliance Industries Chairman Mukesh Ambani, will chair the joint venture, with Uday Shankar serving as the vice chairperson.
