The merger between Reliance and Disney is now complete, with the joint venture creating a $8.5 billion entertainment powerhouse in the Indian entertainment market.
The deal which was proposed in February was consummated between Disney's Star India and Reliance-controlled Viacom18.
The JV will hold about 85 per cent of India's streaming market, according to analysts.
Reliance, which earlier agreed to invest $1.4 billion in fresh capital, will control the JV, with subsidiary Viacom18 holding 63.16 per cent of the venture and Disney the rest.
"By joining forces with Reliance, we are able to expand our presence in this important media market and deliver viewers an even more robust portfolio of entertainment, sports content, and digital services," Robert Iger, CEO of Disney, said in a statement.
The emergent firm will be India's largest, with a likely annual revenue of $3.1 billion, and combines streaming platforms JioCinema and Hotstar with more than 100 television channels.
The content platforms will serve more than 50 million streaming subscribers, producing 30,000 hours of television content annually.
"With the formation of this JV, the Indian media and entertainment industry is entering a transformational era," Reliance's managing director, Mukesh Ambani, in a statement.
"Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer, will ensure unparalleled content choices at affordable prices for Indian viewers. I am very excited about the JV’s future and wish it all the success," the multi-billionaire added.
The JV consolidates control over cricket properties such as the Indian Premier League, ICC tournaments and domestic cricket, as well as FIFA World Cup and Premier League – the most valuable of all media rights.
Viacom18 has also signed deals with Warner Bros and NBCUniversal to licence much of their catalogues for the Indian market, TechCrunch reported.
The JV will be chaired by Nita Ambani, Mukesh's wife with media veteran Uday Shankar as vice-chair.
Shankar earlier led Star India and stepped down as its CEO in 2020 following disagreements with Disney.
Image Source: Unsplash
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