Reliance-Disney Joint Venture: Nita Ambani to Chair New Entertainment & Sports Broadcasting Company

Reliance Industries, Viacom18, and Walt Disney have signed a joint venture agreement. Under this deal, Viacom18 will merge with Star India. Nita Ambani will be the chairperson of this new company. Uday Shankar, the former executive of Walt Disney, will also be the chairperson.

Based on the post-money valuation, the transaction value of this joint venture is estimated to be Rs. 70,352 crores. After the completion of the transaction, Reliance Industries will control the new company and will also make a capital infusion of Rs. 11,500 crores into it. In this arrangement, Reliance and its petrochemical company Viacom18 will hold a majority stake of 63.16%, while Disney will hold a 36.84% stake.

The new company will hold licenses for more than 30,000 pieces of content from Disney. It will be a leading entertainment and gaming content provider in India, spanning across both television and digital streaming platforms. It will offer a wide range of entertainment channels like Colors, StarPlus, Star Gold, as well as sports channels like Star Sports and Sports18. Additionally, it will integrate services like Jio Cinema and Hotstar. Moreover, the new company will also have licenses for over 30,000 pieces of Disney content.

The agreement aims to be completed at the beginning of 2025. The intention is for the deal to be finalized either by the end of this year or at the start of the upcoming year. It is subject to regulatory approval, shareholder consent, and other customary approvals.

Disney’s CEO, Bob Iger, has stated that Reliance understands the Indian market and consumers well. He mentioned that Reliance demonstrates a deep understanding of the Indian market and consumers. Additionally, he expressed the possibility of forming a partnership that would create a leading media company in the country, capable of delivering better services to customers with a vast portfolio of digital services, entertainment, and content.

Mukesh Ambani, Chairman of Reliance Industries, has described it as a historic deal that marks the beginning of a new era in the Indian entertainment industry. He stated that this deal signifies the dawn of a new age in the Indian entertainment industry. He also emphasized that Disney has always been recognized globally as the best media conglomerate.

We are very excited about this strategic partnership and are proud to have Disney as a key partner in the Reliance Group. This will help us offer unique content that will engage viewers across the country and beyond.

Reliance is the largest company in India’s private sector, with a market capitalization of ₹19,68,138.30 crores. As of March 31, 2023, Reliance’s consolidated revenue stands at ₹9,74,864 crores. The company’s net profit is ₹1,25,951 crores, with a consolidated net profit of ₹73,670 crores.

Reliance is currently engaged in various sectors including hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewable energy (solar and hydrogen), digital services, and retail sectors.

Nita Ambani recently resigned from the board of Reliance Industries Limited (RIL). Nita Ambani is also the founder of the ‘Nita Mukesh Ambani Culture Center’. This institution, located in Mumbai, serves as a primary hub for music and theater.