In a landmark move that is set to reshape India’s entertainment landscape, Reliance Industries Limited (RIL) and The Walt Disney Company are merging their media assets following approval from the Competition Commission of India. Mukesh Ambani, Chairman of RIL, hailed the merger as a pivotal moment in India’s entertainment sector. At Reliance’s Annual General Meeting, Ambani emphasized the significance of integrating Disney into the Reliance ecosystem, likening it to the revolutionary impacts of their Jio and Retail arms.
“This partnership with Disney signifies the dawn of a new era for India’s entertainment industry. Our collaboration combines robust content creation with cutting-edge digital streaming,” Ambani remarked. This mega-merger will create the country’s largest media empire, valued over a staggering Rs 70,000 crore.
RIL, through its subsidiary Network 18, already boasts an impressive portfolio of news channels under TV18 and a diverse range of entertainment and sports channels under the Colors brand. Ambani is confident that this expanded media business will cater to every consumer’s taste, from traditional TV viewers to modern digital streamers, thanks to the joint efforts of Disney Hotstar and Jio Cinema platforms. “Our digital-first approach aims to deliver exceptional content at affordable prices,” he stated.
The deal faced rigorous scrutiny before receiving the nod from the anti-trust regulator. It was finalized after both parties agreed to a few modifications in the original structure. According to the arrangement, Reliance and its affiliates will hold a 63.16% stake in the combined entity, with Walt Disney owning the remaining 36.84%.
This partnership also includes a significant financial commitment from Reliance, as they plan to invest close to Rs 11,500 crore. This infusion is expected to provide the new entity with the necessary resources to compete against global giants like Sony and Netflix effectively. Steering this juggernaut will be Nita Ambani as Chairperson and Uday Shankar as Vice Chairperson.
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Source: ETLegalWorld.com
