Reliance Set to Merge with Disney, Impacting Over 100 TV Channels

Mukesh Ambani, the head of the Reliance Industries Group, is poised to become a major player in the Indian media industry. Following the completion of the deal, Ambani will oversee more than 100 channels across the country and two streaming platforms. Reports indicate that the merger of Reliance Industries and Walt Disney is highly likely. As discussions between the two companies progress, the merger of Star India and Viacom18 will encompass over 100 TV channels and two streaming platforms, potentially making it the largest in the media industry.

In terms of ownership distribution, Reliance's stake in the Star-Viacom18 merger unit could surpass 51 percent, with Disney holding approximately 40 percent. The merger of Uday Shankar and James Murdoch's Bodhi Tree Systems could result in a stake of 7-9 percent in the unit. It is also anticipated that Reliance may inject additional capital into the merged unit, potentially establishing it as a direct subsidiary. Notably, Star and Viacom18 collectively generated revenue of Rs 25,000 crore in the fiscal year ending March 31, 2023.

In addition to TV and digital assets, the unit will also acquire the rights to the Indian Super League and Pro Kabaddi League. According to a media report, a senior official with knowledge of the matter stated that Reliance has valued Star India at $4 billion, bringing the combined unit's valuation to $8 billion, factoring in the loss from cricket rights and the declining customer base of Disney + Hotstar.

Reliance Industries shares also experienced an increase on Friday, with the company's stock rising over 3 percent during the trading session. The shares closed at Rs 2914.75, marking a 2.18 percent increase of Rs 62.05 after the market closed. It is anticipated that the company's shares may surpass the Rs 3000 level on Monday, with the company's market capitalization potentially exceeding Rs 20 lakh crore.