JioStar is Born: Reliance Jio and Disney Star Merge in Multi-Billion Dollar Deal

Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18), and The Walt Disney Company have announced a joint venture. This merger, involving the media and JioCinema businesses of Viacom18 into Star India Private Limited (SIPL).

It has received approval from the NCLT Mumbai, Competition Commission of India, and other regulatory bodies. Additionally, anti-trust authorities in regions such as the EU, China, Turkey, South Korea, and Ukraine have also given their nod to this merger.

The JV combines iconic brands like 'Star' and 'Colors' on TV with 'JioCinema' and 'Hotstar' digitally, offering diverse entertainment and sports content to audiences in India. The JioCinema and Hotstar digital platforms have an aggregate subscription base of over 50 million. The digital platform will be called Jiostar, which has already gone live.

RIL has invested ₹11,500 crore (~US$1.4 billion) into this joint venture (JV) to support its growth. The JV is valued at ₹70,352 crore (~US$8.5 billion) post-money, excluding synergies.

Upon completion of the transactions, RIL controls the JV with a 16.34% stake, while Viacom18 holds 46.82%, and Disney owns 36.84%. This strategic collaboration aims to enhance content offerings across various platforms. Mrs. Nita M. Ambani will lead as Chairperson of the JV, with Mr. Uday Shankar serving as Vice Chairperson to provide strategic guidance.

This merger signifies a new chapter in India's media landscape by leveraging both companies' expertise in creating compelling content across multiple platforms while ensuring affordability for consumers globally.

Commenting on the JV, Mr. Mukesh D Ambani, Chairman & Managing Director of Reliance Industries Limited, 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 Mr. Robert A. Iger, Chief Executive Officer, The Walt Disney Company.

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