The merger of Reliance group’s media assets TV18 Broadcast and E18 with Network18 Media & Investments has already been sanctioned by the NCLT | (Photo: Shutterstock)
The merger of Reliance Industries’ media assets and global media house Walt Disney’s India business is expected to be complete by the end of the third quarter of this fiscal year, according to a regulatory filing by the billionaire Mukesh Ambani-led group. .
Fair trade regulator CCI has already approved the merger of Viacom 18 and Star India and the NCLT (National Company Law Tribunal) has sanctioned the plan in this regard.
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“The companies are in the process of obtaining other approvals required for the completion of the transaction and the transaction is expected to close in Q3FY25,” Reliance Industries said in its quarterly earnings statement on Monday.
The merger of media assets controlled by the Reliance group (TV18 Broadcast and E18) with Network18 Media & Investments has already been sanctioned by the NCLT and came into effect from October 3, it said.
Earlier, on September 27, the government approved the transfer of licenses related to non-news and current affairs television channels held by media entities from Reliance Industries to Star India.
The Ministry of Information and Broadcasting, Government of India, as per its order dated September 27, has granted approval for transfer of licenses related to non-news and current affairs television channels held by Viacom18 Media Private Limited to favor of Star India, he said. .
Viacom18 is the holding company that owns the media and entertainment business of Reliance Industries and Bodhi Tree Systems, led by billionaire Mukesh Ambani.
Both parties are in the final stages of the merger, making some adjustments to the business as directed by the Competition Commission of India (CCI).
On August 30, the NCLT approved the merger plan of Viacom18 Media and Digital 18 Media, which owns media and entertainment assets of Reliance Industries with Star India.
The plan had proposed the transfer and acquisition of Viacom 18’s Media Operations Company and Jio Cinema to Digital18, which is a subsidiary of Viacom 18. This would be followed by the “demerger, transfer and acquisition of V18 Company from Digital 18 to Star India”. .
The merger of Reliance Industries’ media assets and The Walt Disney Co.’s Indian business will create the country’s largest media empire worth over Rs 70,000 crore.
Earlier, the CCI had said it had approved the “proposed combination involving Reliance Industries Ltd, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd and Star Television Productions Ltd, subject to compliance with voluntary amendments.”
Viacom18 is a part of the RIL group and Star India is wholly owned by The Walt Disney Company. Star Television Productions, a company incorporated in the British Virgin Islands, is indirectly owned by Walt Disney.
The ICC, however, did not reveal voluntary modifications in the original agreement made by the two parties.
Under the deal, Mukesh Ambani-led RIL and its affiliates will own 63.16 per cent of the combined entity that will house two streaming services and 120 television channels.
Walt Disney will hold the remaining 36.84 per cent stake in the combined entity, which will also be India’s largest media house.
Reliance Industries also agreed to invest around Rs 11,500 crore in the joint venture to give it the muscle to fight rivals such as Sony and Japan’s Netflix.
Nita Ambani, wife of billionaire and RIL chairman Mukesh Ambani, will head the joint venture, while Uday Shankar will be vice-chairman.
(Only the title and image of this report may have been modified by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: October 15, 2024 | 6:54 a.m. IS
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