Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18) and The Walt Disney Company (Disney) at this time introduced the signing of binding definitive agreements to kind a three way partnership (JV) that can mix the companies of Viacom18 and Star India. As a part of the transaction, the media enterprise of Viacom18 shall be merged into Star India Private Limited (SIPL) via a court docket-authorized scheme of association.
In addition, RIL has agreed to speculate at closing Rs 11,500 crore (~US$ 1.4 billion) into the JV for its progress technique.
The transaction values the JV at Rs 70,352 crore (~US$ 8.5 billion) on a submit-cash foundation, excluding synergies. Post completion of the above steps, the JV shall be managed by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.
Disney can also contribute sure further media property to the JV, topic to regulatory and third-social gathering approvals.
Nita M. Ambani would be the Chairperson of the JV, with Uday Shankar as Vice Chairperson offering strategic steering to the JV.
The JV shall be one of many main TV and digital streaming platforms for leisure and sports activities content material in India, bringing collectively iconic media property throughout leisure (e.g. Colors, StarPlus, StarGOLD) and sports activities (e.g. Star Sports and Sports18) together with entry to extremely anticipated occasions throughout tv and digital platforms via JioCinema and Hotstar.
The JV could have over 750 million viewers throughout India and also will cater to the Indian diaspora the world over.
The JV will search to guide the digital transformation of the media and leisure business in India and provide shoppers excessive-high quality and complete content material choices anytime and anyplace.
The mixture of the media experience, slicing-edge know-how and numerous content material libraries of Viacom18 and Star India will permit the JV to supply extra interesting home and world leisure content material and sports activities livestreaming companies, whereas delivering an revolutionary and handy digital leisure expertise at inexpensive costs.
With the addition of Disney’s acclaimed movies and reveals to Viacom18’s famend productions and sports activities choices, the JV will provide a compelling, accessible and novel digital-targeted leisure expertise to individuals in India and the Indian diaspora globally.
The JV will even be granted unique rights to distribute Disney movies and productions in India, with a license to greater than 30,000 Disney content material property, offering a full suite of leisure choices for the Indian shopper.
Mukesh D Ambani, Chairman & Managing Director of Reliance Industries, mentioned, “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.”
Bob Iger, CEO of The Walt Disney Company, mentioned, “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create longterm 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.”
Uday Shankar, Co-founder of Bodhi Tree Systems, mentioned, “We are privileged to be enhancing our relationship with Reliance to now also include Disney, a global leader in media & entertainment. All of us are committed to delivering exceptional value to our audiences, advertisers, and partners. This joint venture is poised to shape the future of entertainment in India and accelerate the Hon’ble Prime Minister’s vision of making Digital India a global exemplar.”
The transaction is topic to regulatory, shareholder and different customary approvals and is anticipated to be accomplished within the final quarter of Calendar Year 2024 or first quarter of Calendar Year 2025.
Goldman Sachs is performing as monetary and valuation advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co and Shardul Amarchand Mangaldas & Co are performing as authorized counsels to RIL and Viacom18 on the transaction. Ernst & Young has offered an unbiased valuation to RIL and Viacom18, whereas HSBC India performing as monetary advisor has offered a Fairness Opinion to Viacom18.
The Raine Group is performing as lead monetary advisor to Disney on the transaction. Citi is performing as a monetary advisor to Disney. Cleary Gottlieb served as lead exterior counsel to Disney and Covington & Burling and AZB served as authorized counsels to Disney on the transaction. BDO has offered an unbiased valuation to SIPL.
