NCLT Approves Merger of Reliance's Viacom18 with Star India

31 Aug, 2024

NCLT Approves Merger of Reliance's Viacom18 with Star India

The NCLT has approved the merger of Reliance Industries-owned Viacom18 Media with Star India, a subsidiary of The Walt Disney Company. This approval follows the Competition Commission of India's decision to sanction the merger, which is set to create India’s largest media conglomerate valued at over ₹70,000 crore. The NCLT’s approval confirms that the scheme is fair and reasonable and complies with legal requirements, provided it meets further conditions from the CCI.

The merger process includes the transfer of media operations from Viacom18 and Jio Cinema into Digital18, a subsidiary of Viacom18. Following this, the operations will be demerged and transferred to Star India. Mukesh Ambani, Chairman of Reliance Industries, views this merger as a pivotal moment for India’s entertainment sector, emphasizing its potential to reshape the media landscape. The combined entity will encompass two streaming services and 120 television channels.

Reliance will hold a 63.16% stake, while Disney will retain 36.84%. To support the venture against competitors like Sony and Netflix, Reliance Industries plans to invest approximately ₹11,500 crore. Nita Ambani will head the joint venture, with Uday Shankar serving as Vice Chairperson.