Reliance Disney Merger
Reliance Industries Limited Chairman Mukesh Ambani on Thursday said the approval of the deal between Reliance and Walt Disney marks the beginning of a new era in the country’s entertainment industry. He said this a day after the Competition Commission of India gave the green signal to the merger of media assets of Reliance and Walt Disney. Welcoming Disney to the Reliance family, Ambani said that like Jio and retail business, the expanded media business will also be an invaluable growth center in the Reliance ecosystem.
It will become the country’s largest media company
“Our partnership with Disney marks the beginning of a new era in India’s entertainment industry. We are combining content creation with digital streaming,” Ambani said at the company’s annual general meeting of shareholders. The Competition Commission of India on Wednesday approved the merger of media assets of Reliance Industries and Walt Disney Co, paving the way for the creation of the country’s largest media company worth over Rs 70,000 crore. Reliance also owns TV18 news channels as well as entertainment (under the ‘Colors’ brand) and sports channels through its holding company Network 18.
There will be 2 OTT platforms
Ambani said, “We will provide world-class digital entertainment across every region, we will cater to every consumer’s preference. We are excited about this partnership.” The combined entity will include two leading OTT (over the top) streaming platforms Disney Hotstar and Jio Cinema. He said, “We are combining content creation with digital streaming. Our digital-first approach will provide unique content at affordable prices.” The deal, announced six months ago, faced CCI scrutiny and was approved after both parties proposed certain amendments to the original transaction structure.
Competition from Sony and Netflix
Under the deal, Mukesh Ambani’s RIL and its affiliates will hold a 63.16 percent stake in the combined entity, which will have two streaming services and 120 television channels. Walt Disney will hold the remaining 36.84 percent stake in the combined entity. It will also be India’s largest media house. Reliance Industries has also agreed to invest about Rs 11,500 crore in the joint venture to give it strength to compete with rivals like Sony and Netflix.
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