Reliance's Viacom18 and Disney's India to be merged soon

Billionaire Mukesh Ambani's Reliance Industries (RIL) and Walt Disney Co are likely to merge their respective Indian media operations, which can result in a transformative shift in the industry.

In terms of financial complications, it is expected that Reliance will provide a cash input for a controlling 51% stake in the proposed Viacom18 unit, while Disney will retain the remaining 49%. The valuation of Disney's India assets, encompassing the Disney+ Hotstar streaming service and Star India, is conservatively estimated to range between $7 billion and $8 billion, a figure slightly below Disney's initial valuation of $10 billion.

The composition of the board for the new unit is expected to have equal representation from both Reliance and Disney. This is happening just as Reliance's JioCinema is making waves in the streaming world. They're even offering free access to the Indian Premier League (IPL) cricket tournament, trying to outshine Disney's previous digital rights.

Now, let's talk about the impact

if this deal goes through, Reliance is putting in a bunch of money to take control. Both companies might pitch in around $1-1.5 billion in cash. Of significance, the merged entity gets to leverage Disney India's content library and enjoy a five-year exclusive license for subscription video-on-demand (SVOD) content featuring Disney+ originals.

This coming merger holds the promise of reshaping the landscape of media and entertainment in India, presenting an intersection of resources and expertise from two industry giants.

An official announcement is expected in January 

Until then...

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