Viacom18-Disney Merger: Viacom18 and Disney merge approved, government grants license to Star India

New Delhi| The government has approved the transfer of the license of the non-news and current affairs TV channel of Viacom18, the media arm of Reliance Industries led by billionaire Mukesh Ambani, to Star India. The Ministry of Information and Broadcasting approved this transfer on September 27, according to regulatory filings made by Reliance Industries and TV18 Broadcast. The government order states that this merger will be subject to the conditions set by the Competition Commission of India. Viacom18 is a holding company that owns the media and entertainment business of Reliance Industries and Bodhi Tree Systems. Now, with both sides in the final stages of the merger, some adjustments are being made to the business as per the instructions of the Competition Commission of India (CCI).

On 30 August, NCLT had approved the merger of Viacom18 and Digital 18 Media, comprising media and entertainment assets of Reliance Industries, with Star India. Under this merger it is proposed to transfer Viacom 18 and Geo Cinema’s media operations undertaking to Digital 18. Digital 18 is a subsidiary of Viacom18. After this, V18 will be separated from Digital 18 and included in Star India. This merger will create the country’s largest media empire, worth more than Rs 70 thousand crores.

Viacom18, is part of the Reliance Group, and SIPL is wholly owned by The Walt Disney Company. STPL, a company incorporated in the British Virgin Islands, is indirectly owned by Walt Disney. However, CCI did not disclose voluntary amendments to the original deal made by both the parties. Under the deal, Mukesh Ambani-led Reliance and its allies will hold a 63.16 per cent stake in the combined entity, which will have two streaming services and 120 television channels.

Walt Disney will hold the remaining 36.84 percent stake in the combined entity, which will also be India’s largest media house. Reliance Industries has also agreed to invest around Rs 11,500 crore in the joint venture to take on rivals like Netflix and Japan’s Sony. Reliance Chairman Mukesh Ambani’s wife Nita Ambani will head the joint venture, while Uday Shankar will be its vice-chairman.