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Reliance Industries Restricted (RIL), Viacom 18 Media Personal Restricted (Viacom18) and The Walt Disney Firm (Disney) on February 28 introduced the signing of binding definitive agreements to type a three way partnership (JV) that may mix the companies of Viacom18 and Star India. As a part of the transaction, the media endeavor of Viacom18 shall be merged into Star India Personal Restricted (SIPL) via a court-approved scheme of association.
As well as, RIL has agreed to take a position at closing Rs 11,500 crore (~US$ 1.4 billion) into the JV for its development technique.
The transaction values the JV at Rs 70,352 crore (~US$ 8.5 billion) on a post-money foundation, excluding synergies. Submit completion of the above steps, the JV shall be managed by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.
Disney may contribute sure extra media belongings to the JV, topic to regulatory and third-party approvals.
Nita M. Ambani would be the Chairperson of the JV, with Uday Shankar as Vice Chairperson offering strategic steering to the JV.
The JV shall be one of many main TV and digital streaming platforms for leisure and sports activities content material in India, bringing collectively iconic media belongings throughout leisure (e.g. Colours, StarPlus, StarGOLD) and sports activities (e.g. Star Sports activities and Sports18) together with entry to extremely anticipated occasions throughout tv and digital platforms via JioCinema and Hotstar.
The JV could have over 750 million viewers throughout India and also will cater to the Indian diaspora the world over.
The JV will search to guide the digital transformation of the media and leisure trade in India and provide shoppers high-quality and complete content material choices anytime and wherever.
The mixture of the media experience, cutting-edge expertise and various content material libraries of Viacom18 and Star India will enable the JV to supply extra interesting home and international leisure content material and sports activities livestreaming providers, whereas delivering an progressive and handy digital leisure expertise at inexpensive costs.
With the addition of Disney’s acclaimed movies and reveals to Viacom18’s famend productions and sports activities choices, the JV will provide a compelling, accessible and novel digital-focused leisure expertise to individuals in India and the Indian diaspora globally.
The JV may also be granted unique rights to distribute Disney movies and productions in India, with a license to greater than 30,000 Disney content material belongings, offering a full suite of leisure choices for the Indian client.
Mukesh D Ambani, Chairman & MD of Reliance Industries, stated, “This can be a landmark settlement that heralds a brand new period within the Indian leisure trade. We’ve got all the time revered Disney as the very best media group globally and are very excited at forming this strategic three way partnership that may assist us pool our in depth sources, artistic prowess, and market insights to ship unparalleled content material at inexpensive costs to audiences throughout the nation. We welcome Disney as a key accomplice of Reliance group.”
Bob Iger, CEO of The Walt Disney Firm, stated, “India is the world’s most populous market, and we’re excited for the alternatives that this three way partnership will present to create longterm worth for the corporate. Reliance has a deep understanding of the Indian market and client, and collectively we’ll create one of many nation’s main media corporations, permitting us to raised serve shoppers with a broad portfolio of digital providers and leisure and sports activities content material.”
Uday Shankar, Co-founder of Bodhi Tree Methods, stated, “We’re privileged to be enhancing our relationship with Reliance to now additionally embody Disney, a worldwide chief in media & leisure. All of us are dedicated to delivering distinctive worth to our audiences, advertisers, and companions. This three way partnership is poised to form the way forward for leisure in India and speed up the Hon’ble Prime Minister’s imaginative and prescient of creating Digital India a worldwide exemplar.”
The transaction is topic to regulatory, shareholder and different customary approvals and is predicted to be accomplished within the final quarter of calendar 12 months 2024 or first quarter of 2025.
Goldman Sachs is appearing as monetary and valuation advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co and Shardul Amarchand Mangaldas & Co are appearing as authorized counsels to RIL and Viacom18 on the transaction.
Ernst & Younger has supplied an impartial valuation to RIL and Viacom18, whereas HSBC India appearing as monetary advisor has supplied a Equity Opinion to Viacom18.
The Raine Group is appearing as lead monetary advisor to Disney on the transaction. Citi is appearing as a monetary advisor to Disney. Cleary Gottlieb served as lead outdoors counsel to Disney and Covington & Burling and AZB served as authorized counsels to Disney on the transaction. BDO has supplied an impartial valuation to SIPL.
Disclosure: News18.com is a part of Network18 Media & Funding Restricted which is owned by Reliance Industries Restricted.
