The digital era has seen a remarkable merge. Reliance Industries Limited and Walt Disney Company have officially joined forces, signing a solid agreement to combine their media businesses in India. This paves the way for creating a massive media and entertainment powerhouse worth $8.5 billion (Rs 70,352 crore), outshining any other entity in the industry. With that, they secured some incredible cricket rights.
The Big Step:
Reliance has disclosed that, under the agreement, Viacom18’s media business will merge into Star India Private Limited (“SIPL”) through a court-approved arrangement. In simpler terms, this joint venture (JV) will combine the operations of Viacom18 and Star India, with Viacom18’s media division integrating into Star India Private Limited through a court-approved process.
Once the merger is finalized, RIL will primarily control the JV, holding 46.82 percent ownership, while Viacom18 and Disney will have 36.84 percent and 16.34 percent, respectively. This indicates that Reliance and its affiliates will collectively own more than 60 percent (a majority stake) in the company. To bolster the JV, Reliance has committed to investing Rs 11,500 crore.
Moreover, Disney might also contribute additional media assets to the JV, contingent upon regulatory and third-party approvals. These moves solidify the collaboration between Reliance, Viacom18, and Disney, creating a significant entity in the media and entertainment landscape.
Upcoming Cricket Rights and Mukesh Ambani’s Words:
The merged entity is set to dominate the cricketing realm with rights to broadcast India’s home matches, the lucrative Indian Premier League (IPL), and the Women’s Premier League (WPL), solidifying its position as a key player in the Indian cricketing ecosystem. Additionally, the joint venture will command the rights for International Cricket Council (ICC) events, Australia’s home matches, the Big Bash League (BBL), South Africa’s home matches, and the fast-paced South African T20 (SA20) league.
On this big momet, 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.”
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