Reliance, Disney to form joint venture valued at $8.5B

Mukesh Ambani-owned Reliance Industries Limited (RIL) and entertainment conglomerate The Walt Disney Company have agreed to form a joint venture.

As part of the transaction, the media undertaking of Viacom18 will be merged into Star India Private Limited through a court-approved scheme of arrangement, the companies said in a statement.

The transaction is estimated to be valued at about $8.5 billion on a post-money basis, the statement read. Disney will likely contribute certain additional media assets to the JV, subject to regulatory and third-party approvals.

RIL would invest $1.4 billion into the joint venture for its growth strategy.

Nita Ambani will assume the role of Chairperson of this joint venture while former Walt Disney executive Uday Shankar will serve as Vice Chairperson.

"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," said Mukesh Ambani Chairman and Managing Director of Reliance Industries.

The transaction is expected to be completed between October 2024 and March 2025.

"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," said Bob Iger, CEO of The Walt Disney Company.