publive-image

The merger will also focus on regional content, with plans to offer programming in languages such as Tamil, Telugu, Marathi, and Bengali

Reliance Industries Limited (RIL) has received approval from the Ministry of Information and Broadcasting (I&B) for its merger with Disney.

Reliance plans to invest ₹11,500 Crore into the partnership, which is projected to be valued at ₹70,350 Crore ($8.5 billion) after funding.

The approval permits the transfer of television channel ownership rights. It signifies a crucial achievement in the formation of one of India's biggest media entities.

Ministry of I&B to Transfer Channels from Viacom18 Media Pvt Ltd to Star India Pvt Ltd

The Ministry of Information and Broadcasting allows for the transfer of non-news and current affairs channels from Viacom18 Media Pvt Ltd to Star India Pvt Ltd. As a part of the significant merger plan, Viacom18’s media channels will now be managed under Star India's portfolio.

Mukesh Ambani emphasized the company’s strategy to merge content creation with digital streaming to meet the growing demand for digital entertainment in India. The merger is anticipated to greatly enhance Reliance's footprint in the media sector. It encompasses television broadcasting, online streaming, and rights to sports events.

Reliance to Hold a Stake of Over 60% in the New Company

As a part of the merger, Reliance Industries will hold a majority stake of over 60% in the newly formed media entity, with a direct ownership of 16% and an additional 47% through its Viacom18 Media division.

Disney, however, will keep a 37% ownership in the new company. This merger will amalgamate Reliance's Viacom18 Media and Digital18 with Disney's Star India and Star Television.

This consolidation will unite a wide range of media holdings, encompassing well-known television networks like Colors, Star Plus, Star Gold, Star Sports, and Sports18.

The new company resulting from the merger will gain exclusive rights to distribute Disney films and productions in India. The company will give access to over 30,000 Disney content assets, including popular franchises from Marvel and Lucasfilm.

The approval for the merger was granted on September 28, 2024. It will also concentrate on local content, aiming to provide shows in dialects like Tamil, Telugu, Marathi, and Bengali. Additionally, sports coverage is a major focus, with the new entity planning to lead the Indian sports broadcasting industry.

Moreover, following the announcement of the merger, the stock prices of Reliance saw a dip of 3%, currently trading at Rs 2,970.25 per share.