Reliance-Disney merger: The Ministry of Information and Broadcasting, on Saturday, September 28, gave its approval to Mukesh Ambani-led Reliance Industries for the transfer of channels ahead of the $8.5-billion merger with Disney. The approval was given for the transfer of licenses relating to non-news and current affairs television channels. As part of the move, the channels held by Viacom 18 Media Pvt Ltd will be transferred to Star India Pvt Ltd. 

“It is hereby informed that the Ministry of Information and Broadcasting (I&B), Government of India, vide its order dated September 27, 2024, has granted its approval for the transfer of Licenses relating to Non News & Current Affairs TV channels held by Viacom18 Media in favour of Star India subject to conditions laid by Competition Commission of India,” said Reliance Industries Ltd (RIL) in a regulatory filing to the stock exchanges.

Reliance-Disney merger: CCI gives nod to $8.5 billion deal

The merger is subject to the conditions of the antitrust watchdog, the Competition Commission of India (CCI). In August 2024, the CCI approved the proposed merger of Walt Disney Co.’s local media operations and billionaire Mukesh Ambani’s oil-to-telecom conglomerate, paving the way for the creation of an $8.5 billion media behemoth in one of the world’s fastest-growing entertainment markets.

In February, Reliance Industries, helmed by Asia’s richest person, signed a binding agreement with Disney to merge their media operations in India. This move cemented Reliance Industries’ dominant position in the sector and gave them the lion’s share of the coveted cricket broadcast rights.

Reliance is all set to control over 60 per cent of the new combined unit — 16 per cent directly and 47 per cent via the Viacom18 Media business it largely owns — while 37 per cent goes to Disney. Reliance owns Viacom18 Media and Digital18, and Disney controls Star India and Star Television.

RIL Chairman Mukesh Ambani addressed shareholders during the 47th annual general meeting (AGM) and said that the Reliance-Disney merger marked the beginning of a new era. “This marks the beginning of a new era in India’s entertainment industry. We are combining content creation with digital streaming,” Ambani said, emphasizing the company’s digital-first approach.

Post-Merger Outlook

Nita Mukesh Ambani will chair the combined venture, while Shankar will be vice-chairperson. The joint venture will combine media assets across entertainment (TV channels such as Colors, Star Plus, Star Gold) and sports (Star Sports and Sports18), along with content streaming on over-the-top platforms JioCinema and Hotstar, reaching more than 750 million viewers across India. 

It will also gain exclusive rights to distribute Disney films and productions in India, with a licence to use over 30,000 Disney content assets. The merged entity will have approximately 100 TV channels, 70 under Disney and the rest under Viacom18.  The deal gives Reliance access to Disney’s extensive English-language libraries, including its Marvel and Lucasfilm catalogues. 

Reliance already has content from Warner Bros. Discovery, including acclaimed HBO Originals, and is bullish on regional languages, including the four South Indian languages, Marathi, and Bengali. Sports will remain a priority for the entity, leaving little room for others in this space. On Friday, shares of RIL settled 1.72 per cent higher at ₹3,052.40 apiece on the BSE.