Reliance, Disney, and Viacom18 have joined forces to create the largest media entity in the South Asian market. The joint venture, valued at $8.5 billion, will see Reliance owning 16.34%, Disney owning 36.84%, and Viacom18 owning 46.82% of the merged entity.
Key Takeaway
Reliance, Disney, and Viacom18 have formed a $8.5 billion joint venture, creating the largest media entity in the South Asian market. The merger aims to enhance scale, profitability, and competitiveness in the Indian TV and streaming video landscape.
Reliance’s Strategic Move
Reliance, India’s most valuable firm, aims to expand its presence in the fast-growing Indian market by merging its media assets with Disney India. The company plans to invest $1.4 billion into the joint venture to support its growth strategy.
Implications for Disney
For Disney, the merger marks a significant development. The company’s India business, previously valued at about $16 billion, will now be part of the joint venture. However, Disney disclosed a non-cash pre-tax impairment of between $1.8 billion to $2.4 billion in the current quarter, reflecting a write-down of the net assets of Star India.
Creating a Media Powerhouse
The merger unites two leading Indian streamers, JioCinema and Disney+Hotstar, and provides access to Disney’s extensive content library. The combined entity is set to reach over 750 million viewers across India, positioning itself as a dominant player in the Indian entertainment landscape.
