Disney and Reliance Join Forces to Create Media Powerhouse in India

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Walt Disney Co. and Mukesh Ambani’s Reliance Industries Ltd. have recently agreed to merge their media operations in India, establishing a dominant force in the rapidly growing entertainment market. This collaboration is estimated to be worth an impressive $8.5 billion.

According to the terms of the agreement, Walt Disney Co. will hold a 36.84% stake in the joint venture, while Reliance Industries Ltd. will own 16.34%. The remaining 46.82% will be controlled by Viacom18 Media Pvt. Ltd. Additionally, Reliance will invest an additional $1.4 billion in the joint venture as growth capital.

The joint venture will have exclusive distribution rights for Disney’s extensive content library, which includes over 30,000 assets. This strategic partnership allows Disney to tap into the vast potential of the Indian market, which poses significant challenges for global giants such as Netflix and Amazon Prime Video.

The deal is expected to be finalized by the end of 2024 or early 2025. With this merger, India will witness the emergence of one of the largest entertainment firms in the country, capable of competing on a global scale.

Streaming Potential

The collaboration will also boost Reliance’s streaming platform, Jio Cinema, by providing access to Disney-Star India’s content library and leveraging Disney’s expertise in sports broadcasting. Nita Ambani will serve as the chairperson of the joint venture, while Uday Shankar is set to be the vice chairperson.

Goldman Sachs acted as the financial and valuation adviser for Reliance and Viacom18, while Raine Group and Citi Group served as financial advisers to Disney.

Disney faces various challenges in the Indian market, such as retaining subscribers and securing sought-after media assets. On the other hand, Reliance has become increasingly aggressive in the media and entertainment sector and has secured a larger share of the local market.

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Reliance, in particular, has emerged as one of Disney’s main competitors in India. In 2022, Reliance outbid Disney to acquire the streaming rights for the Indian Premier League, a highly popular cricket tournament with a colossal worth of $6.2 billion. Additionally, Reliance secured a multi-year agreement in April to broadcast HBO shows, including hits such as “Succession,” “House of the Dragon,” and “The Last of Us,” which were previously held by Disney.

Analysts predict that this merger could result in significant cost savings and improve Disney’s bottom line.

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