Companies to merge respective digital
streaming and television assets in India to create a world class
leader across entertainment and sports
Reliance to invest ₹11,500 crore in the
Joint Venture
Disney to provide Content License to the
Joint Venture
Reliance Industries Limited (“RIL”), Viacom 18 Media Private
Limited (“Viacom18”) and The Walt Disney Company (NYSE: DIS)
(“Disney”) today announced the signing of binding definitive
agreements to form a joint venture (“JV”) that will combine the
businesses of Viacom18 and Star India. As part of the transaction,
the media undertaking of Viacom18 will be merged into Star India
Private Limited (“SIPL”) through a court-approved scheme of
arrangement.
In addition, RIL has agreed to invest at closing ₹11,500 crore
(~US$ 1.4 billion) into the JV for its growth strategy.
The transaction values the JV at ₹70,352 crore (~US$ 8.5
billion) on a post-money basis, excluding synergies. Post
completion of the above steps, the JV will be controlled by RIL and
owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney.
Disney may also contribute certain additional media assets to
the JV, subject to regulatory and third-party approvals.
Mrs. Nita M. Ambani will be the Chairperson of the JV, with Mr.
Uday Shankar as Vice Chairperson providing strategic guidance to
the JV.
The JV will be one of the leading TV and digital streaming
platforms for entertainment and sports content in India, bringing
together iconic media assets across entertainment (e.g. Colors,
StarPlus, StarGOLD) and sports (e.g. Star Sports and Sports18)
including access to highly anticipated events across television and
digital platforms through JioCinema and Hotstar. The JV will have
over 750 million viewers across India and will also cater to the
Indian diaspora across the world.
The JV will seek to lead the digital transformation of the media
and entertainment industry in India and offer consumers
high-quality and comprehensive content offerings anytime and
anywhere. The combination of the media expertise, cutting-edge
technology and diverse content libraries of Viacom18 and Star India
will allow the JV to offer more appealing domestic and global
entertainment content and sports livestreaming services, while
delivering an innovative and convenient digital entertainment
experience at affordable prices. With the addition of Disney’s
acclaimed films and shows to Viacom18’s renowned productions and
sports offerings, the JV will offer a compelling, accessible and
novel digital-focused entertainment experience to people in India
and the Indian diaspora globally.
The JV will also be granted exclusive rights to distribute
Disney films and productions in India, with a license to more than
30,000 Disney content assets, providing a full suite of
entertainment options for the Indian consumer.
Speaking about the JV, Mr. Mukesh D Ambani, Chairman &
Managing Director of Reliance Industries, said, “This is a landmark
agreement that heralds a new era in the Indian entertainment
industry. We have always respected Disney as the best media group
globally and are very excited at forming this strategic joint
venture that will help us pool our extensive resources, creative
prowess, and market insights to deliver unparalleled content at
affordable prices to audiences across the nation. We welcome Disney
as a key partner of Reliance group.”
Mr. Bob Iger, CEO of The Walt Disney Company, said, “India is
the world’s most populous market, and we are excited for the
opportunities that this joint venture will provide to create
long-term value for the company. Reliance has a deep understanding
of the Indian market and consumer, and together we will create one
of the country’s leading media companies, allowing us to better
serve consumers with a broad portfolio of digital services and
entertainment and sports content.”
Mr. Uday Shankar, Co-founder of Bodhi Tree Systems, said, “We
are privileged to be enhancing our relationship with Reliance to
now also include Disney, a global leader in media &
entertainment. All of us are committed to delivering exceptional
value to our audiences, advertisers, and partners. This joint
venture is poised to shape the future of entertainment in India and
accelerate the Hon’ble Prime Minister’s vision of making Digital
India a global exemplar.”
The transaction is subject to regulatory, shareholder and other
customary approvals and is expected to be completed in the last
quarter of Calendar Year 2024 or first quarter of Calendar Year
2025.
Goldman Sachs is acting as financial and valuation advisor and
Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co and
Shardul Amarchand Mangaldas & Co are acting as legal counsels
to RIL and Viacom18 on the transaction. Ernst & Young has
provided an independent valuation to RIL and Viacom18, while HSBC
India acting as financial advisor has provided a Fairness Opinion
to Viacom18.
The Raine Group is acting as lead financial advisor to Disney on
the transaction. Citi is acting as a financial advisor to Disney.
Cleary Gottlieb served as lead outside counsel to Disney and
Covington & Burling and AZB served as legal counsels to Disney
on the transaction. BDO has provided an independent valuation to
SIPL.
About Reliance Industries Limited
Reliance is India’s largest private sector company, with a
consolidated revenue of Rs 9,74,864 crore (US$118.6 billion), cash
profit Rs 1,25,951 crore (US$ 15.3 billion) and net profit of Rs
73,670 crore (US$9.0 billion) for the year ended March 31, 2023.
Reliance’s activities span hydrocarbon exploration and production,
petroleum refining and marketing, petrochemicals, advanced
materials and composites, renewables (solar and hydrogen), retail
and digital services.
Currently ranked 88th, Reliance is the largest private sector
company from India to be featured in Fortune’s Global 500 list of
‘World’s Largest Companies’ for 2023. The company stands 45th in
the Forbes Global 2000 rankings of 'World’s Largest Public
Companies' for 2023, the highest among Indian companies. Reliance
is the top-ranked Indian company and the only one in the top 100 on
Forbes' 'World's Best Employers' 2023 list. Additionally, it is
featured among LinkedIn’s 'Top Companies 2023: The 25 Best
Workplaces To Grow Your Career In India.' Website: www.ril.com
About Viacom 18 Media Private Limited
Viacom18 Media Pvt. Ltd. is one of India’s fastest growing
entertainment networks and a house of iconic brands that offers
multi-platform, multi-generational and multicultural brand
experiences. Viacom18 defines entertainment in India by touching
the lives of people through its properties on air, online, on
ground, in cinemas and merchandise. Its portfolio of 38 channels
across general entertainment, movies, sports, youth, music and kids
genres delights the consumers across the country with its eclectic
mix of programming. JioCinema, Viacom18’s OTT platform, is one of
India’s leading streaming services and most popular destination for
live sports. Viacom18 Studios has successfully produced and
distributed iconic Hindi films and clutter-breaking regional films
for over 13 years in India.
About The Walt Disney Company
The Walt Disney Company, together with its subsidiaries and
affiliates, is a leading diversified international entertainment
and media enterprise that includes three core business segments:
Entertainment, Sports and Experiences. Disney is a Dow 30 company
and had annual revenues of $88.89billion in its Fiscal Year
2023.
About Star India
With a television network that reaches more than 700 million
viewers in nine different languages every month and a streaming
platform (Disney+ Hotstar) that has transformed the way India
consumes entertainment, Disney Star is a leading media &
entertainment company in the country. The organization’s
entertainment portfolio, which generates more than 20,000 hours of
original content every year, cuts across general entertainment,
sports, films, infotainment, kids and lifestyle content. With
leadership positions in every segment it occupies, Disney Star has
been redefining the media landscape for more than 30 years now,
anchored on the three pillars of storytelling, innovation and an
unwavering focus on delivering to the expectations of our
audiences.
About Bodhi Tree Systems
Bodhi Tree Systems is a strategic investor in consumer
technology opportunities in Southeast Asia, with a particular focus
on India. The entity is a platform of James Murdoch's Lupa Systems
and Uday Shankar and was established in 2021 to explore and invest
in Southeast Asia and the Middle East. In addition to media, Bodhi
Tree expects to invest in other consumer technology sectors that
represent significant opportunities but suffer from a lack of
capital and innovation – including healthcare and education. Qatar
Investment Authority (QIA), the sovereign wealth fund of the State
of Qatar, is an investor in Bodhi Tree Systems.
FORWARD-LOOKING STATEMENTS – THE WALT DISNEY COMPANY
The terms “Company,” “we,” and “our” are used below to refer
collectively to The Walt Disney Company and the subsidiaries
through which its various businesses are actually conducted.
Certain statements and information in this communication may
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements regarding the Company’s expectations, beliefs, plans,
strategies, business or financial prospects or outlook, trends,
future growth opportunities and drivers; expected benefits of a
joint venture with RIL, including future products and service
offerings and consumer sentiment, priorities and demand;
investments in and structure of joint venture; and other statements
that are not historical in nature. These statements are made on the
basis of the Company’s views and assumptions regarding future
events and business performance and plans as of the time the
statements are made. The Company does not undertake any obligation
to update these statements unless required by applicable laws or
regulations, and you should not place undue reliance on
forward-looking statements.
Actual results may differ materially from those expressed or
implied. Such differences may result from actions taken by the
Company, including restructuring or strategic initiatives or other
business decisions, as well as from developments beyond the
Company’s control, including: the occurrence of subsequent events;
deterioration in domestic or global economic conditions or failure
of conditions to improve as anticipated; deterioration in or
pressures from competitive conditions, including competition to
create or acquire content; competition for talent and competition
for advertising revenue; consumer preferences and acceptance of our
content, offerings, pricing model and price increases, and
corresponding subscriber additions and churn, and the market for
advertising sales on our direct-to-consumer services and linear
networks; health concerns and their impact on our businesses and
productions; international, political or military developments;
regulatory and legal developments, including failure to obtain
necessary regulatory approvals; technological developments; labor
markets and activities, including work stoppages; adverse weather
conditions or natural disasters; and availability of content. Such
developments may further affect entertainment, travel and leisure
businesses generally and may, among other things, affect (or
further affect, as applicable): our operations, business plans or
profitability, including direct-to-consumer profitability; our
expected benefits from a joint venture with RIL; demand for our
products and services; performance of the Company’s content; our
ability to create or obtain desirable content at or under the value
we assign the content; the advertising market for programming;
income tax expense; and performance of some or all Company
businesses either directly or through their impact on those who
distribute our products.
Additional factors are set forth in the Company’s Annual Report
on Form 10-K for the year ended September 30, 2023, including under
the captions “Risk Factors,” “Management’s Discussion and Analysis
of Financial Condition and Results of Operations,” and “Business,”
quarterly reports on Form 10-Q, including under the captions “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” and subsequent filings with
the Securities and Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228780283/en/
Reliance Tushar Pania tushar.pania@ril.com
The Walt Disney Company George Cherian Corporate
Communications Disney India & Star India
George.Cherian@disney.com
Mike Long Corporate Communications Mike.P.Long@Disney.com
David Jefferson Corporate Communications
David.J.Jefferson@disney.com
Walt Disney (NYSE:DIS)
Historical Stock Chart
From Apr 2024 to May 2024
Walt Disney (NYSE:DIS)
Historical Stock Chart
From May 2023 to May 2024