Reliance and Disney’s Mega Merger Gets NCLT’s Blessing, Creates India’s Largest Media Empire
In a major move that is set to revolutionize India’s media landscape, the National Company Law Tribunal (NCLT) has approved the merger of Reliance Industries-owned Viacom 18 Media with Star India. This development comes just two days after the Competition Commission of India (CCI) greenlit the deal, paving the way for the creation of India’s largest media empire worth over Rs 70,000 crore.
The NCLT’s approval is seen as a significant milestone in the journey to create a new media giant in the country. The scheme of arrangement, which was approved by a two-member bench of the NCLT, proposed the transfer and vesting of Media Operations Undertaking from Viacom 18 and JioCinema into Digital 18, a subsidiary of Viacom 18. This would be followed by a demerger, transfer, and vesting of V18 Undertaking from Digital 18 into Star India.
The joint venture, which will house two streaming services and 120 television channels, is set to be led by Nita Ambani, wife of Reliance Industries Chairman Mukesh Ambani, and Uday Shankar will be the Vice Chairperson. The Ambani-led Reliance Industries Ltd and its affiliates will hold a 63.16% stake in the combined entity, while Walt Disney will hold 36.84%.
The deal, announced six months ago, faced scrutiny by the anti-trust regulator and approval from the NCLT. The CCI cleared the proposed combination, subject to the compliance of voluntary modifications, without disclosing the details of the modifications made by the parties.
Reliance Industries has also committed to investing close to Rs 11,500 crore into the joint venture, giving it the muscle to compete with global players like Sony and Netflix. The mega-merger is seen as a game-changer in India’s entertainment industry, and marks the beginning of a new era in media and entertainment.
"This deal will create a new media giant in India, and we are excited to embark on this journey," said Mukesh Ambani, Chairman of Reliance Industries, welcoming Disney to the Reliance family. "Just like Jio and the retail business, the expanded media business will be an invaluable growth centre in the Reliance ecosystem."
The Reliance-Disney merger is likely to have far-reaching implications for India’s media and entertainment industry, and will likely shape the future of content creation, consumption, and distribution in the country.
