Reliance and Walt Disney are merging their operations in India to create a Rs 70,352-crore ($8.5 billion) hulk that will straddle television and digital streaming platforms.

The deal, brewing for several months, was sealed when RIL, Viacom 18 Media Pvt Ltd (Viacom18) and The Walt Disney Company (Disney) announced the signing of binding definitive agreements to form a joint venture.

It will see Reliance and Viacom18 holding a 63.16 per cent stake — 16.34 per cent by RIL, 46.82 per cent by Viacom18 — with the rest by Disney.

A press statement from RIL said the media businesses of Viacom18 will be merged with Star India Pvt Ltd (SIPL) through a court-approved scheme of arrangement.

RIL has agreed to invest close to Rs 11,500 crore in the JV, while Disney may bring additional media assets, subject to regulatory and third-party approvals. Nita M. Ambani will be the chairperson of the JV, with Uday Shankar vice-chairperson.

Viacom18 is a subsidiary of TV18 Broadcast Ltd (TV18), which is a subsidiary of Network18 Media & Investments Ltd (Network18). The latter is controlled by Independent Media Trust the sole beneficiary of which is RIL.

For the quarter ended December 31, 2023, Network18 held 51.17 per cent in TV18. It is learnt that the Reliance group (including TV18) holds around 71 per cent in Viacom18.

Reliance said the JV will be one of the leading TV and digital streaming platforms for entertainment and sports content in India: it will bring strong media assets in entertainment comprising more than 100 channels that include Colors, StarPlus, StarGOLD and sports (Star Sports and Sports18). It will also include two streaming platforms JioCinema and Disney+Hotstar.

According to Reliance, the combination of the media expertise, cutting-edge technology and diverse content libraries of Viacom18 and Star India will allow the JV to offer more appealing domestic and global entertainment content and sports live streaming services while delivering an innovative and convenient digital entertainment experience at affordable prices.

The JV will be get exclusive rights to distribute Disney films and productions in India, with a license to more than 30,000 Disney content assets, providing a full suite of entertainment options for the Indian consumer.

“This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance group,” said Mukesh D. Ambani, chairman and managing director, RIL.

Disney has been examining options in India that included an outright sale or a joint venture since July last year. This came as its key asset — the streaming service Disney+ Hotstar lost the bid for the digital streaming rights in the 2023-27 cycle of the Indian Premier League (IPL), which was won by Viacom18.

“Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content,’’ Bob Iger, CEO of The Walt Disney Company, said.