Reliance Industries Limited shared an official statement on February 28, 2024, about its decision to join hands with Walt Disney to create India's media powerhouse. The official statement made a huge uproar even in the international media, as a few years ago, Disney Hotstar and Jio TV were arch-rivals. However, as time progressed, Mukesh Ambani, the chairman and managing director of Reliance Industries Limited (RIL), turned everything upside down by announcing a joint venture.
According to a report in Business Wire, Reliance Industries, Viacom 18, and Walt Disney completed their merger on November 14, 2024, after getting official approval from the honourable NCLT Mumbai. The report further added that the merger is now officially effective, and Mukesh Ambani's Reliance Industries has also invested Rs. 11,500 crore in it to make it a force to be reckoned with in the Indian entertainment market.
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The name of the merger hasn't been announced yet, but most media reports refer to it as a JV (Joint Venture). According to Business Wire, a JV is a combination of Star and Colours in the television space, while on the digital platform, Jio Cinema and Hotstar have joined hands. Courtesy of the merger of these four major platforms, there's no denying the fact that JV has already shown signs of dominating India's entertainment space.
As per the industry experts, JV will have an estimated pro forma combined revenue of Rs. 26,000 crore. Not only this, JV will also operate over 100-plus television channels, which will reportedly produce 30,000-plus hours of content annually. Another major positive coming out of this merger is the massive surge in JV's subscriber base, which is exceeding the mark of 50 million after Jio Cinema and Disney Hotstar joined hands. Talking about the new structure of the JV, Reliance owns a 16.34 percent stake, while Disney holds 36.84 percent, and Viacom 18 has 46.82 percent.
For the uninitiated, Reliance Industries Limited has a major 70.49 percent stake in Viacom 18, which clearly explains why Nita Ambani was announced as the JV's chairperson. While Nita is heading the merger, Uday Shankar has been appointed as the vice chairperson. In addition to this, JV will be led by three CEOs, Sanjog Gupta for sports, Kiran Mani for digital operations, and Kevin Vaz for entertainment.
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According to a report in The Times Of India, Disney Hotstar and JioCinema's merger will seriously challenge Amazon, Netflix, and SonyLiv's domination in India. Amidst all the buzz around this merger, not everyone is aware of the fact that Reliance has also officially acquired a vital 13.01 percent in the world-famous Paramount Group that will help them make their mark in the global entertainment space. The website, 'JioStar.com', is already live and has a special tagline that goes like "forging a new path to inspire a billion imaginations".
Soon after Nita Ambani's appointment as JV's chairperson, her husband, Mukesh Ambani talked about the merger and its future. The billionaire talked about the Rs. 70,352 crore deal and stated that the Indian media is entering a transformational phase, where many exciting things are waiting. Mukesh Ambani also added that their creative experience, unmatched understanding of Indian consumers and merger with Disney will allow them to offer unparalleled content choices to the Indian audience. An excerpt from his long statement can be read as:
"With the formation of this JV, the Indian media and entertainment industry is entering a transformational era. Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer, will ensure unparalleled content choices at affordable prices for Indian viewers. I am very excited about the JV's future and wish it all the success."
Apart from being the chairperson of JV, Nita Ambani is also the chairperson and founder of the Reliance Foundation. Under Nita Ambani's leadership, the Reliance Foundation has helped over 76 million Indians in 55,550 villages. She is also the co-owner of Mumbai Indians and the founder of Her Circle. We hope Nita Ambani takes JV to similar heights in the future.
What are your thoughts on this mega-merger, which will pen a new chapter in India's entertainment industry? Let us know.
Also Read: Nita Ambani's Diet Plan: From Breakfast To Dinner, Here's What Mukesh Ambani's Wife Eats And Drinks
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