Reliance-Disney merger

The $ 8.5 billion behemoth birthed by the merger of RIL’s Viacom and Walt Disney’s star India is set to redefine media, entertainment and sports in India. With over 750 million viewers, 200,000- plus hours of content, and all the key cricket properties under its belt, the new entity could very well change the rules of the game even globally.

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The major highlights of the companies, its deal and subsequent impact:-

(a)?? The $8.5 billion Star India -Viacom18 is most valued company in Indian M&E Sector.

(b)?? It will have over 40 % market share in TV and OTT Markets.

(c)??? The total stake of RIL and Viacom18 is 63% and rest of the share lying with the Disney’s.

(d)?? The combined operating revenue of Rs.25,000 Cr in FY 22-23.

(e)?? Reliance will have 5 seats on the BOD of the JV, Disney will have 3 directors and there will be 2 independent directors.

(f)??? The merged entity will have key brands like- Star, colors, MTV, Disney, Nickelodeon, and National Geographic. Besides, the star and colors brands, the other brand names will have to be licensed from Disney and Paramount Global.

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Impact on the Industry:

The Reliance-Disney alliance is expected to have far-reaching implications for the entertainment and media industry. The consolidation of resources and expertise will likely create a more formidable competitor for other major players, challenging the status quo and driving innovation in the sector.

Source:- ET