Reliance Makes Its Big Move in Indian Media
Mukesh Ambani’s Reliance Industries is set to shake up India’s media landscape with the merger of Viacom18 and Star India in an $8.5 billion megadeal. Seen as a pivotal moment for the entertainment sector, the acquisition will bring together two of the largest players in India under one roof.
According to sources, Reliance will invest $1.4 billion of its funds into the venture, underscoring Ambani’s bullish outlook on the growth potential of India’s fast-evolving media industry.
The newly formed entity is expected to have a massive reach, operating over 120 TV channels viewed by an estimated 750 million Indians nationwide.
This will give the company an unparalleled array of popular brands like Star Plus, Colors, MTV, Nickelodeon, and more under its control. Industry insiders view the mega-merger as Viacom18’s bid to strengthen its position relative to market leader Disney, whose Star network has long dominated the sector.
Completion of the deal, which still requires regulatory approval, could come as soon as late 2022 or early next year. Disney will reportedly retain a 37% stake and distribution rights for its content in India. Viacom18 and Reliance will own 47% and 16% shares in the joint venture, respectively.
With streaming giants Netflix and Amazon investing heavily, the merged Viacom18-Star entity is poised to up the ante in the race for India’s booming digital audience. Under Nita Ambani’s leadership, expectations are high that the new venture will emerge as a preeminent force in the country’s cutthroat media landscape for years.
