With Reliance’s deep understanding of the Indian market and Disney’s massive content portfolio, the joint venture aims to dominate both traditional television and digital streaming, focusing on entertainment and sports content to over 750 million viewers in India as well as the global Indian diaspora
In a massive deal which will loom over India’s booming media and entertainment sectors, Reliance Industries Limited and Walt Disney have signed a binding merger of their Indian TV and streaming media arms, creating an $8.5 billion juggernaut that will dominate its competitors in the world’s most populous nation.
A Breakdown of the Mega Deal
Led by Asia’s richest man, Mukesh Ambani, Reliance will invest $1.4 billion into the merged entity, securing a controlling stake of 63%. Disney will hold 37% of the joint venture. The merged entity will boast 120 TV channels and two streaming platforms, along with coveted cricket broadcasting rights in a nation mad about the sport.
With Reliance’s deep understanding of the Indian market and Disney’s massive content portfolio, the joint venture aims to dominate both traditional television and digital streaming, focusing on entertainment and sports content to over 750 million viewers in India as well as the global Indian diaspora (estimated to be around 15 million people worldwide).
Nita Ambani, wife of Mukesh Ambani, will chair the board of the combined entity, while former Disney executive Uday Shankar will serve as vice chair. The merger positions Reliance to surpass competitors such as Sony and Zee in India’s booming $28 billion media and entertainment sector.
Commenting on the deal, Mukesh Ambani said, “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance Group.”
Bob Iger, CEO of Walt Disney, echoed Ambani’s sentiments, stating, “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company. Reliance has a deep understanding of the Indian market and consumer, and together, we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content.”
The Move Comes Amid Disney’s Struggles Elsewhere
For Disney, this merger is a golden opportunity to tackle issues in its Indian streaming business and the financial strain of large investments in cricket rights. The valuation of Disney’s India business is around $3 billion post-merger, a sharp decrease from its valuation of $15 billion in 2019.
The agreement also comes amidst Disney’s global efforts to streamline its operations, with Bob Iger pivoting to cost control and profitability. However, Disney remains committed to investing in the Indian market, considering the nation as one of its most lucrative growth avenues. For Reliance, meanwhile, the merger signals an expansion into the rapidly growing media and entertainment sector, further solidifying its position as the powerhouse par excellence of India Inc.
The deal is subject to regulatory and shareholder approvals and is expected to be completed by either the last quarter of 2024 or the first quarter of 2025. With Goldman Sachs and Raine Group serving as financial advisors and a large legal counsel team including Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co, and Shardul Amarchand Mangaldas & Co, the Reliance-Disney merger is a landmark event in Indian business.
