Reliance Industries Seeks Approval for Viacom18-Star India 8.5$ Billion Merger

Reliance Industries, led by billionaire Mukesh Ambani, is seeking approval from the Competition Commission of India (CCI) for an $8.5 billion merger between Viacom18 and Star India Pvt Ltd (SIPL). The merger aims to combine the entertainment businesses of Viacom18, part of the Reliance Industries group, and SIPL, currently owned by The Walt Disney Company (TWDC).

Once the merger is complete, SIPL, now a wholly-owned subsidiary of TWDC, will become a joint venture (JV) co-owned by Reliance, Viacom18, and TWDC’s subsidiaries.

Reliance stated in their notice to the CCI that the merger will not negatively impact competition in India. They also identified key markets where both companies overlap, such as licensing audio-visual content, distributing TV channels, providing audio-visual content, and selling advertising space.

SIPL is involved in various media activities, including TV broadcasting, film production, and running an OTT platform. Viacom18 is engaged in TV broadcasting, operating an OTT platform, and producing and distributing movies both in India and globally.

In February, Walt Disney Co and Reliance Industries announced their agreement to merge their media operations in India, creating a massive $8.5 billion entity. This merger will result in the largest media and entertainment company in India, with over 100 channels in multiple languages, two major OTT platforms, and a viewership of 750 million people across the country.

Nita Ambani, wife of Reliance Chairman Mukesh Ambani, will chair the joint venture, with Uday Shankar serving as Vice Chairperson. Reliance and its affiliates will own 63.16% of the combined company, while Disney will hold the remaining 36.84%. Additionally, Reliance plans to invest around ₹11,500 crore into the joint venture to expand the OTT business.