Nita M. Ambani chairs unique JV that produces 30,000+ hours of content annually
A unique joint venture of Reliance Industries Limited (RIL), Viacom 18 Media Private Limited and The Walt Disney Company (NYSE: DIS) have been completed, heralding a new era in India’s entertainment industry for consumers.
This unique joint venture of Reliance and Disney brings together the companies’ content creation and curation prowess, world-class digital streaming capabilities along with a digital first approach that will help the JV deliver unparalleled content choices at affordable prices to Indian viewers and the Indian diaspora globally, RIL said on 14 Nov.
“The JV will be one of the largest Media & Entertainment companies in India with pro forma combined revenue of approximately Rs.26,000 crore (~US$3.1 billion) for the fiscal year ended in March 2024,” said RIL.
The JV operates over 100 TV channels and produces 30,000+ hours of TV entertainment content annually. The JioCinema and Hotstar digital platforms have an aggregate subscription base of over 50 million. The JV holds a portfolio of sports rights across cricket, football and other sports.
Approved by various regulatory bodies, the JV is controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney. The merger of the media and JioCinema businesses of Viacom18 into Star India Private Limited (SIPL) has become effective JV.
In addition, RIL has invested Rs.11,500 crore (US$ 1.4 billion) into the JV for its growth. The JV has allotted shares to Viacom18 and RIL as consideration for the assets and cash, respectively.
The transaction values the JV at Rs.70,352 crore (~US$8.5 billion) on a post-money basis, excluding synergies.
Nita M. Ambani will be the Chairperson of the JV, with Uday Shankar as Vice Chairperson providing strategic guidance to the JV.
The JV is home to the most iconic and engaging media brands in India across TV and digital platforms. The combination of ‘Star’ and ‘Colors’ on the television side and ‘JioCinema’ and ‘Hotstar’ on the digital front will provide extensive choice of content across entertainment and sports to viewers in India and globally.
The transaction has been approved by anti-trust authorities in the EU, China, Turkey, South Korea and Ukraine.
Speaking about the JV, RIL CMD Mukesh D Ambani said, “With the formation of this JV, the Indian media and entertainment industry is entering a transformational era.
“Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer will ensure unparalleled content choices at affordable prices for Indian viewers. I am very excited about the JV’s future and wish it all the success.”
“This is an exciting moment for our two companies, as well as for India’s consumers, as we create one of the top entertainment entities in the country through this joint venture,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “By joining forces with Reliance, we are able to expand our presence in this important media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services.”
Uday Shankar, Co-Founder of Bodhi Tree Systems, said, “James and I are excited to be partners in this journey to disrupt the media and entertainment industry in India. The new organisation is committed to deliver an unprecedented level of creativity, disruption and new age consumer experience.
“As media consumption continues to move to an integrated TV-digital ecosystem, the merger of Viacom18 and Star India offers a unique opportunity to reorient the industry to better serve diverse cohorts of consumers across the country. Together, we aim to build India’s largest integrated media platform which will deliver unparalleled experiences in innovative and exciting ways.”
The JV will be spearheaded by three CEOs who will lead the company into a new era of ambition and disruption. Kevin Vaz will head the entertainment organisation across platforms. Kiran Mani will take charge of the combined digital organization. Sanjog Gupta will lead the combined sports organisation. Together, they will leverage their unique strengths to cultivate a bold, transformative vision that challenges the status quo and sets new standards in the industry.
In a separate transaction, RIL has bought out Paramount Global’s entire stake of 13.01% in Viacom18 for Rs.4,286 crore. As a result, Viacom18 is owned 70.49% by RIL, 13.54% by Network18 Media & Investments Ltd. and 15.97% by Bodhi Tree Systems, on a fully-diluted basis.
Reliance is India’s largest private sector company, with a consolidated revenue of Rs.10,00,122 crore (US$119.9 billion), cash profit of Rs.141,969 crore (US$17.0 billion) and net profit of Rs.79,020 crore (US$9.5 billion) for the year ended 31 March 2024.
The Walt Disney Company, together with its subsidiaries, is a leading diversified international family entertainment and media enterprise that includes three business segments: Entertainment, Sports and Experiences. Disney is a Dow 30 company and had annual revenue of$88.9 billion in its Fiscal Year 2023.
Bodhi Tree Systems is a strategic investor in consumer technology opportunities in Southeast Asia, with a particular focus on India. The entity is a platform of James Murdoch’s Lupa Systems and Uday Shankar and was established in 2021 to explore and invest in Southeast Asia and the Middle East. Fiinews.com
