According to a regulatory filing by the Mukesh Ambani-led group, the merger of Reliance Industries’ media assets and the India division of the multinational media conglomerate Walt Disney is anticipated to be finalized by the end of the third quarter of this fiscal year.
The merger of Viacom18 and Star India has already received approval from the Competition Commission of India (CCI), which oversees fair trade. The merger plan has received approval from the National Company Law Tribunal (NCLT).
Reliance Industries said in its quarter earnings statement on Monday that “the companies are in the process of obtaining other requisite approvals for the completion of the transaction and transaction closer is expected in 3Q FY25.”
According to the announcement, the NCLT has already approved the merger of TV18 Broadcast and E18, media assets owned by the Reliance Group, with Network18 Media & Investments, which went into effect on October 3.
The licenses for non-news and current affairs television stations that were formerly owned by Reliance Industries’ media companies were transferred to Star India by the government earlier on September 27.
In a September 27 decree, the Indian government’s Ministry of Information and Broadcasting approved the transfer of Viacom18 Media Private Limited’s licenses for non-news and current affairs television stations to Star India.
As directed by the CCI, both parties are making some business adjustments as they near the end of the merger.
The NCLT accepted the plan to merge Viacom18 Media and Digital 18 Media, which held Reliance Industries’ media and entertainment holdings, with Star India on August 30.
The plan called for Viacom 18 and Jio Cinema to transfer and vest their Media Operations Undertaking in Digital18, a Viacom 18 subsidiary. “Demerger, transfer and vesting of V18 Undertaking from Digital 18 into Star India” would come next.
The country’s largest media empire, valued at over Rs 70,000 crore, would be created by the merging of Reliance Industries’ media businesses with The Walt Disney Co.’s India division.
The CCI had previously stated that it has authorized 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 the compliance of voluntary modifications” .
The Walt Disney Company is the sole owner of Star India, whereas Viacom18 is a member of the Reliance Industries Limited (RIL) group. The Walt Disney Company indirectly owns Star Television Productions, which was established in the British Virgin Islands.
However, voluntary changes made by the two parties to the original agreement were not disclosed by the CCI.
According to the agreement, RIL, which is managed by Mukesh Ambani, and its affiliates would own 63.16 percent of the combined company, which will include 120 television channels and two streaming services.
The remaining 36.84 percent of the combined company, which will also be the biggest media outlet in India, would be owned by Walt Disney.
In order to give the joint venture the strength to compete with rivals like Netflix and Sony of Japan, Reliance Industries has also committed to investing almost Rs 11,500 crore in it.