Reliance-Disney merger: A look at the combined assets
After months of uncertainty, the CIC finally approved the $8.5 billion merger between Reliance and Walt Disney on Wednesday
After months of uncertainty, the Competition Commission of India (CCI) finally on Wednesday approved the proposed merger involving Reliance Industries Limited (RIL), Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited (SIPL), and Star Television Productions Limited. The nod follows CIC’s preliminary concerns that the $8.5 billion merger between Reliance's and Walt Disney's media assets could harm competition, especially due to their combined control over cricket broadcasting rights.
The approval has paved the way for the creation of India’s biggest media network, with the joint venture combining the businesses of Viacom18 and Star India consisting of entertainment and sports pay TV and free-to-air networks, DTC services, library content and certain production businesses (the Star India Transaction).
The JV is valued at ₹70,352 crore (US$ 8.5 billion) on a post-money basis, excluding synergies. 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.
Here is the breakdown of the assets of the two companies (as listed in some media reports).
* Reliance’s Viacom18 has 40 television channels
* Disney Star has nearly 80 channels
* Viacom18 has the TV rights for BCCI’s domestic and international cricket matches. Disney has TV rights for IPL until 2027.
* Both companies' channels span general entertainment, sports, children's TV, documentaries and lifestyle programmes. They also cover several regional language programming.
* Disney has the digital rights for ICC matches in India until 2027. JioCinema now has the streaming rights for IPL until 2027
* Reliance's JioCinema and Disney's Hotstar would have a combined library of 200,000 plus hours of content that includes television dramas, movies and sport events.
* Disney's streaming content includes global movies from the Marvel universe as well as National Geographic documentaries.
* JioCinema last year struck deals with The Pokemon Company to stream content and signed a deal with Warner Bros
