Three CEOs will lead the joint venture. On November 14, Reliance Industries Limited, Viacom18, and Disney announced that the media and JioCinema businesses of Viacom18 had merged into Star India Private Limited, with Reliance investing Rs 11,500 crore in expansion capital. This comes after being approved by the Competition Commission of India, the NCLT Mumbai, and other regulatory bodies. For the JV's expansion, RIL has contributed Rs 11,500 crore. As payment for the properties and cash, respectively, the JV has given shares to Viacom18 and RIL.
"With synergies excluded, the transaction values the JV at Rs 70,352 crore on a post-money basis. Following the completion of the aforementioned transactions, RIL controls 16.34% of the joint venture, Viacom18 owns 46.82%, and Disney owns 36.84%, according to a joint statement from the firms."Three CEOs will drive the company into a new era of ambition and disruption as the joint venture's leaders. Kevin Vaz will be in charge of the platform-spanning entertainment company. The united digital organization will be led by Kiran Mani. In charge of the merged sports organization will be Sanjog Gupta. Collectively, they will use their distinct advantages to develop a daring, revolutionary vision that upends the status quo and establishes new benchmarks for the sector," the companies continued.
The JV will be chaired by Nita Ambani, and its vice chairperson will be Uday Shankar, who would be "providing strategic guidance to the JV".
"The Indian media and entertainment industry is entering a transformative era with the formation of this JV," stated Mukesh D. Ambani, Chairman & Managing Director of Reliance Industries Limited. For Indian viewers, we will guarantee unrivaled content options at reasonable costs because to our extensive creative experience, our partnership with Disney, and our exceptional comprehension of the Indian market. I wish the JV all the best and am really thrilled about its future.
"The Indian media and entertainment industry is entering a transformative era with the formation of this JV," stated Mukesh D. Ambani, Chairman & Managing Director of Reliance Industries Limited. For Indian viewers, we will guarantee unrivaled content options at reasonable costs because to our extensive creative experience, our partnership with Disney, and our exceptional comprehension of the Indian market. I wish the JV all the best and am really thrilled about its future.
In a different deal, RIL paid Rs 4,286 crore to acquire Paramount Global's whole 13.01% holding in Viacom18. Consequently, on a fully diluted basis, RIL owns 70.49% of Viacom18, Network18 Media & Investments Ltd. owns 13.54%, and Bodhi Tree Systems owns 15.97%.
"JioCinema and Hotstar on the digital front and Star and Colors on the television front will give audiences in India and around the world a wide variety of entertainment and sports-related content. Customers will witness a new era in India's entertainment sector with the launch of the JV. According to the companies, this special joint venture between Reliance and Disney combines their expertise in content creation and curation, world-class digital streaming capabilities, and a digital first strategy to help the JV offer Indian viewers and the Indian diaspora around the world unparalleled content options at competitive prices.
With a total turnover of about Rs 26,000 crore for the fiscal year that ends in March 2024, the joint venture would rank among the biggest media and entertainment enterprises in India. The joint venture creates more than 30,000 hours of TV entertainment content a year and runs more than 100 TV channels. The combined number of subscribers to the JioCinema and Hotstar digital services exceeds 50 million. The JV has a variety of sports rights in football, cricket, and other games.
Robert A. Iger, CEO of The Walt Disney Company, stated, "This is an exciting moment for our two companies, as well as for Indian consumers, as we create one of the top entertainment entities in the country through this joint venture." "We are able to increase our footprint in this significant media market and provide viewers with an even more extensive selection of digital services, sports content, and entertainment by partnering with Reliance."
"The new organization is committed to deliver an unprecedented level of creativity, disruption, and new age consumer experience," stated Uday Shankar, co-founder of Bodhi Tree Systems. The combination of Viacom18 and Star India presents a rare chance to realign the sector to better serve various consumer segments throughout the nation as media consumption continues to shift to an integrated TV-digital environment. Our joint goal is to create the biggest integrated media platform in India that offers unmatched experiences in creative and captivating ways.
"JioCinema and Hotstar on the digital front and Star and Colors on the television front will give audiences in India and around the world a wide variety of entertainment and sports-related content. Customers will witness a new era in India's entertainment sector with the launch of the JV. According to the companies, this special joint venture between Reliance and Disney combines their expertise in content creation and curation, world-class digital streaming capabilities, and a digital first strategy to help the JV offer Indian viewers and the Indian diaspora around the world unparalleled content options at competitive prices.
With a total turnover of about Rs 26,000 crore for the fiscal year that ends in March 2024, the joint venture would rank among the biggest media and entertainment enterprises in India. The joint venture creates more than 30,000 hours of TV entertainment content a year and runs more than 100 TV channels. The combined number of subscribers to the JioCinema and Hotstar digital services exceeds 50 million. The JV has a variety of sports rights in football, cricket, and other games.
Robert A. Iger, CEO of The Walt Disney Company, stated, "This is an exciting moment for our two companies, as well as for Indian consumers, as we create one of the top entertainment entities in the country through this joint venture." "We are able to increase our footprint in this significant media market and provide viewers with an even more extensive selection of digital services, sports content, and entertainment by partnering with Reliance."
"The new organization is committed to deliver an unprecedented level of creativity, disruption, and new age consumer experience," stated Uday Shankar, co-founder of Bodhi Tree Systems. The combination of Viacom18 and Star India presents a rare chance to realign the sector to better serve various consumer segments throughout the nation as media consumption continues to shift to an integrated TV-digital environment. Our joint goal is to create the biggest integrated media platform in India that offers unmatched experiences in creative and captivating ways.
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