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    Milestone Merger: Reliance and Disney Unite India Media Assets in $8.5B Joint Venture

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    Business News: The newly formed entity secures exclusive rights for both digital and TV broadcasts of prestigious cricket events in India.

    Reliance, Viacom18 from its portfolio, and Disney are merging their media businesses in India, forming the largest media entity in the country. Reliance, with control over the joint venture, holds a direct 16.34% ownership in the merged entity valued at $8.5 billion. Disney will possess a 36.84% stake, while Viacom18, backed by Reliance, Paramount Global, and Bodhi Tree, will own a 46.82% stake in the newly created entity.

    Reliance, India’s most valuable firm, sees an opportunity to enhance and consolidate its presence in the fast-growing Indian market by merging its media assets with Disney India. Reliance, holding around 75% of Viacom18, intends to invest $1.4 billion in the joint venture to support its growth strategy. For Disney, the deal comes with mixed feelings as it once valued its India business at about $16 billion, and the streaming platform Hotstar, part of Disney India after the Fox acquisition, facilitated aggressive expansion into several Southeast Asian streaming markets.

    Disney has revealed in an SEC filing that the joint venture with Reliance will experience a non-cash pre-tax impairment ranging between $1.8 billion and $2.4 billion. Approximately half of this impairment is attributed to a write-down of the net assets of Star India.

    The strategic merger between Reliance and Disney India brings together two major Indian streaming platforms, JioCinema and Disney+Hotstar. The joint venture also provides access to numerous Disney-owned TV channels and exclusive rights to Disney’s movies and other productions in India, along with a vast library of content. The combined unit is expected to reach over 750 million viewers in India. This collaboration comes amid challenges faced by large media giants in the Indian market, with Sony recently calling off its merger with Zee Entertainment. Reliance Chairman Mukesh Ambani described the deal with Disney as a landmark agreement that signals a new era in the Indian entertainment industry.

    The merger between Reliance, Disney, and Viacom18 brings together two major Indian streaming platforms, JioCinema and Disney+Hotstar, creating the largest media entity in India. The joint venture also includes access to TV channels, exclusive rights to Disney’s productions in India, and a vast content library. The combined unit aims to reach over 750 million viewers in India. This strategic collaboration comes amid challenges faced by large media giants in the Indian market.

    The merger is expected to create long-term value, offering a broad portfolio of digital services, entertainment, and sports content to Indian consumers. The deal is set to be completed by the end of March 2025, subject to regulatory and shareholder approval.

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