The Walt Disney Company and industrialist Mukesh Ambani’s Reliance Industries have officially merged their Indian TV and streaming businesses to bring together Reliance’s Viacom18 and Disney’s Star India as part of a deal worth a whopping USD 8.5 billion on a 'post-money basis', Reliance Industries announced in a statement on X (formerly Twitter).

“Reliance And Disney announce strategic joint venture to bring together the most compelling and engaging entertainment brands in India. Companies to merge respective digital streaming and television assets in India to create a world class leader across entertainment and sports. Reliance to invest Rs 11,500 crore in the Joint Venture. Disney to provide content license to the joint venture,” the official handle of Reliance Industries posted on X alongside an official statement.

Under the terms of the agreement, Reliance Industries will hold a 16.3 per cent stake in the merged entity, while Viacom18 will have the majority with 46.8 per cent, and Disney will own 36.8 per cent. The joint venture is set to receive a significant financial boost, with Reliance committing to invest USD 1.4 billion.

Heading the merged entity will be Nita Ambani, who will serve as the chairperson. Uday Shankar, former Disney India chair, is appointed as the vice-chair and strategic advisor.

The combined force of the two media giants is set to create a powerhouse with a reach that spans over 750 million viewers across India and the global Indian diaspora. The joint venture will also be granted exclusive rights to distribute Disney films and productions in India, boasting a license to over 30,000 Disney content assets, providing a comprehensive suite of entertainment options for Indian consumers.

Despite Disney's initial dominance — thanks to the Star pay-TV platform and the immensely popular Hotstar streaming service — the Viacom18 group, under the control of Ambani, emerged as a formidable competitor with its Jio-branded operations covering mobile phones, broadband internet, and the streaming service JioCinema.

Disney faced a significant setback in 2022 when it failed to secure the streaming rights for the 2023-2027 seasons of the Indian Premier League cricket tournament, a property previously showcased on Hotstar. In a surprising turn of events, Jio, with a bid of approximately USD 3 billion, secured the streaming rights, leading to a loss of millions of users for Disney's Hotstar when Jio streamed the IPL free of charge in 2023, undercutting Star and altering the streaming landscape in India.