The merger of media assets of Reliance Industries and the India business of global media house Walt Disney is expected to be completed by the end of the third quarter of this fiscal, according to a regulatory filing by Mukesh Ambani-led group.
The fair trade regulator, the Competition Commission of India (CCI), has already approved the merger of Viacom18 and Star India. The National Company Law Tribunal (NCLT) has sanctioned the merger scheme.
"The companies are in the process of obtaining other requisite approvals for the completion of the transaction and transaction closer is expected in 3Q FY25," informed Reliance Industries on Monday in its quarter earning statement.
The merger of Reliance Group-controlled media assets, TV18 Broadcast and E18, with Network18 Media & Investments, has already been sanctioned by the NCLT and became effective on October 3, according to the statement.
Earlier on September 27, the government approved the transfer of licenses for Non News & Current Affairs TV channels, previously held by media entities of Reliance Industries, to Star India.
“The Ministry of Information and Broadcasting, Government of India, vide its order dated September 27, has granted its approval for transfer of Licenses relating to Non News & Current Affairs TV channels held by Viacom18 Media Private Limited in favour of Star India,” it had said.
Viacom18 is the holding company that owns the media and entertainment business of Mukesh Ambani-led Reliance Industries and Bodhi Tree Systems.
Both sides are in the final stages of the merger, making some adjustments in the business, as per the CCI directions.
On August 30, the NCLT had approved the scheme of merger of Viacom18 Media and Digital 18 Media, holding media and entertainment assets of Reliance Industries with Star India.
The scheme had proposed the transfer and vesting of Media Operations Undertaking from Viacom 18 and Jio Cinema into Digital18, a subsidiary of Viacom 18. This would be followed by "demerger, transfer and vesting of V18 Undertaking from Digital 18 into Star India".
The merger of the media assets of Reliance Industries and The Walt Disney Co.'s India business will create the country's largest media empire worth over Rs 70,000 crore.
Earlier, the CCI had said it had cleared the "proposed combination involving Reliance Industries Ltd, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd and Star Television Productions Ltd, subject to the compliance of voluntary modifications".
Viacom18 is part of the Reliance Industries Limited (RIL) group, while Star India is wholly owned by The Walt Disney Company. Star Television Productions, incorporated in the British Virgin Islands, is indirectly owned by The Walt Disney Company.
The CCI, however, did not disclose voluntary modifications in the original deal made by the two parties.
As per the deal, Mukesh Ambani-led RIL and its affiliates will hold 63.16 per cent of the combined entity that will house two streaming services and 120 television channels.
Walt Disney will hold the remaining 36.84 per cent stake in the combined entity, which will also be India's largest media house.
Reliance Industries has also agreed to invest close to Rs 11,500 crore into the joint venture to give it the muscle to fight rivals like Japan's Sony and Netflix.
Nita Ambani, wife of RIL Chairman Mukesh Ambani, will head the joint venture, while Uday Shankar will be the vice-chairperson.
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