Reliance-Disney merger complete, Reliance Industries will invest ₹11500 crore in the new company
Reliance and Disney have completed the deal to form a joint venture (JV) for entertainment brands in India. After the completion of this merger, the joint venture has become the country’s largest media company, whose value has been estimated at Rs 70,352 crore. Reliance Industries Limited, Viacom18 and Disney have informed that the merger of Viacom18’s media and Jio Cinema business with Star India Private Limited has become effective.
This merger was earlier approved by NCLT Mumbai, CCI and other regulatory authorities. Reliance Industries Limited will invest Rs 11,500 crore in the joint venture for its growth. The JV has allotted shares to Viacom18 and RIL in exchange for assets and cash.
Value of JV: Rs 70,352 crore
The companies said in a joint statement, “The value of the JV in this transaction is estimated at Rs 70,352 crore on a post-money basis. Upon completion of the transaction, RIL controls the JV and RIL holds 16.34 per cent, Viacom18 46.82 per cent and Disney 36.84 per cent.
The JV will have 3 CEOs
The Reliance-Disney JV will have 3 CEOs while Nita Ambani will be the chairperson of the Reliance-Disney JV. Kevin Vaz will lead the entertainment organization on all platforms. Kiran Mani will take charge of the combined digital organization.
