Reliance Industries and Walt Disney have reached an agreement to combine their Indian media companies, forming the world’s most populated country’s $8.5 billion entertainment industry.
India presently boasts one of the largest entertainment markets globally, and the impending merger is anticipated to cause even more upheaval in the multibillion dollar sector.
In a joint statement released late on Wednesday, the two companies said that they had inked “binding definitive agreements” to establish a joint venture that will integrate the operations of Viacom18, financed by Reliance, and Star India.
The billionaire businessman Mukesh Ambani’s oil-to-telecom firm Reliance will contribute $1.4 billion to the new venture. According to the statement, Disney would own 36.8% of the company, followed by Reliance with 16.3% and Viacom18 with 46.8%.
“This is a landmark agreement that heralds a new era in the Indian entertainment industry,” Ambani stated. Nita Ambani, his wife, will act as its chair.
With more than 100 television channels and two streaming platforms, the combined company will be a major player in the entertainment industry.
Both the Indian diaspora and “over 750 million viewers across India” will be served by the joint venture, according to the corporations.
“Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies,” Robert Iger, CEO of Disney, stated.
Additionally, the partnership will assist Reliance and Disney in fending off competition from streaming giant Amazon as well as traditional rivals like Japan’s Sony and India’s Zee Entertainment.
