On February 28, Reliance Industries Limited and The Walt Disney Company officially ratified a legally binding agreement, marking the commencement of their collaborative efforts to establish a media conglomerate valued at $8.5 billion.
The proposed alliance between Reliance Industries Limited and The Walt Disney Company is anticipated to secure a significant foothold in India’s burgeoning streaming market, commanding nearly half of its share post the announcement of their merger.
According to a recent Bloomberg report, which references Comscore data, before the consolidation agreement, a substantial portion of India’s online audience had already gravitated toward streaming platforms owned by Reliance and Walt Disney.
Reliance is slated to absorb Disney’s India operations, heralding the birth of a mammoth entity valued at over $8.5 billion, translating to more than Rs 70,000 crore, offering a diverse array of entertainment content spanning films, television shows, news, and sports.
The report delineates that a substantial chunk of the Indian market, accounting for 46.6 percent and comprising a user base of 243.5 million individuals, actively engaged with three principal platforms – namely, Disney’s Hotstar, Reliance’s JioCinema, and JioTV.
Of these platforms, Hotstar alone commanded the attention of over 144 million unique visitors, while JioCinema and JioTV collectively boasted more than 129 million visitors.
The report underscores the pivotal role of cricket content in propelling the success of these platforms, citing instances such as the Men’s Cricket World Cup in November, which garnered a viewership of 191 million on Hotstar, alongside the Indian Premier League coverage, which proved immensely lucrative for Reliance.
In a strategic move last month, Reliance and Walt Disney solidified their collaboration through a binding definitive agreement to merge Viacom18 and Star India’s businesses.
Reliance has pledged an investment of $1.4 billion, amounting to approximately Rs 11,500 crore, into the joint venture.
With a valuation of $8.5 billion, excluding synergies, the combined entity will be under the control of RIL, with Viacom18 and Disney holding ownership stakes of 46.82 percent and 36.84 percent, respectively.
Heading the amalgamated entity will be Nita Ambani, assuming the role of chairperson, alongside the appointment of former senior Disney executive Uday Shankar as vice-chairperson.
