In a strategic move set to reshape the Indian media landscape, Mukesh Ambani’s Reliance Industries (RIL) is reportedly in talks with Walt Disney Co to merge their respective media operations in India. The discussions between both parties involve the absorption of Disney’s Star India into a newly-formed unit of Reliance’s Viacom18 through a share swap deal in January.
As per the proposed arrangement, Reliance may acquire a 51% stake in the Viacom18 unit by paying cash, while Disney would retain a 49% stake. The unit’s board is anticipated to have equal representation from both entities, creating a collaborative governance structure as per the Economic Times.
Earlier estimates by Bloomberg valued Disney’s India assets, including the Disney Hotstar streaming service and Star India, at a range of $7 billion to $8 billion, while Disney valued them at $10 billion. The merger discussions reflect Reliance’s strategic move to strengthen its foothold in the Indian media market.
JioCinema trumps Disney Hotstar
Reliance’s Viacom18, responsible for JioCinema, has emerged as a formidable player in the streaming landscape, intensifying competition among digital platforms. Mukesh Ambani’s marketing prowess was evident as JioCinema gained attention by offering free access to the IPL cricket tournament, a significant draw for Indian audiences. Previously, digital rights for IPL were held by Disney.
The potential merger comes at a critical time for Disney Star, which faced a decline in subscriber numbers following the loss of IPL streaming rights. While Disney Star retained television rights for cricket until 2027, it explored various options, including talks with Adani, Sun TV Network owner Kalanithi Maran, and private equity firm Blackstone.
JioCinema, backed by Reliance, demonstrated its popularity by attracting a record 32 million concurrent viewers during the IPL final in May, a match freely accessible on the platform. Leveraging this momentum, JioCinema has recently introduced subscription charges for select content, following a multi-year pact to stream exclusive content from Warner Bros Discovery Inc in India.
As Reliance’s Viacom18 and Disney explore this potential merger, the Indian media landscape stands on the brink of significant transformation, with JioCinema poised to assert its dominance in the streaming market.
Editor's Pick
Cricket
Champions Trophy Schedule: IND vs PAK clash on Feb 23 as per tentative schedule - Report
Top Stories
