The OTT industry has seen many rumors about the possible merger of Reliance and Disney for many days. After a lot of near-perfect reports, the highly anticipated merger between Reliance and Disney, valued at Rs 70,352 Crore, was officially announced yesterday. Disney’s Indian business, which includes Star India, has faced challenges and a decline in value. Disney has formed a joint venture with Reliance Industries Limited and Viacom 18 Media Private Limited to rejuvenate its operations. Reliance will invest ₹11,500 crores ($1.4 billion) to support the growth of the venture, resulting in a valuation of ₹70,352 crore ($8.5 billion).
Disney will hold a 36.84% stake in this joint venture, while Reliance and Viacom will own 16.34% and 46.82%, respectively. The merger will bring together prominent media assets such as Colors and Star Sports, offering a wide range of content across TV and digital platforms, including JioCinema and Hotstar.
Under the leadership of Nita M. Ambani, the venture aims to digitally transform India’s entertainment industry by providing diverse and affordable content. It will also have exclusive rights to distribute Disney content in India, enhancing its offerings. This deal signifies a significant shift for Disney+ Hotstar, likely to merge with JioCinema. Despite challenges such as declining subscribers due to the loss of cricket rights, this joint venture presents a lucrative opportunity for Disney to monetize its content and reach a vast Indian audience. The completion of the venture is subject to regulatory approvals. It is expected to occur by late 2024 or early 2025, promising a transformative impact on India’s media landscape, encompassing both TV and OTT platforms.
