Reliance, Disney may announce Star-Viacom18 merger this week
Reliance Industries and the Walt Disney Company have signed a binding agreement to merge Viacom18 and Star India, with the deal expected to be announced early this week, people privy to the development told ET. The deal, which has been in the works for over four months, will create India's largest media empire, spanning TV broadcasting, streaming, movies and sports.
The two media companies generated revenue of ₹25,000 crore between them in FY23. «The merger deal has finally been signed after months of negotiations. The announcement will happen early this week. It was expected to happen late last week,» a top executive told ET on the condition of anonymity.
According to another person, Reliance may own 61% of the proposed combined company, with Disney holding 33% and Bodhi Tree Systems having the remaining 6%.
Despite being the larger of the two entities, Disney's Star India has seen its valuation drop to roughly $4 billion, accounting for the anticipated loss from its sports business. Viacom18 was valued at roughly $4 billion when Reliance and Bodhi Tree infused over ₹15,000 crore into the company in April last year. Paramount Global, a shareholder in Viacom18, is set to exit the company with Reliance buying its stake. In the US, the Shari Redstone-promoted company has become an acquisition target.
«Reliance is likely to invest $1-$2 billion, with a large part of that being deployed to infuse funds into the merged entity and a part going into the buyout of Paramount's stake,» said a third person, asking not to
