Discover the latest power move in the media world as Reliance and Disney joint venture is Chaired by Nita Ambani, wife of billionaire Mukesh Ambani. With a staggering valuation of Rs 70,000 crore and promises of unrivaled entertainment, this merger is set to reshape the industry landscape.
Nita Ambani to Lead Disney and Reliance Joint Venture
Nita Ambani, wife of billionaire and Reliance chairman Mukesh Ambani, is stepping into a significant role as she takes the helm of the joint venture between Walt Disney Co. and Reliance Industries. This partnership aims to merge their media operations in India, forming a business valued at Rs 70,000 crore.
Nita Ambani will serve as the chairperson of the joint venture, alongside Uday Shankar, who will act as the vice chairperson. Reliance and its affiliates will hold a majority stake of 63.16%, while Disney will own the remaining 36.84%. This collaboration will bring together two streaming services and an extensive portfolio of 120 television channels.
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Financial Details
The deal values the joint venture at Rs 70,352 crore (USD 8.5 billion) post-transaction, excluding synergies. As part of the agreement, Viacom18‘s media operations will be merged into Star India Private Limited (SIPL) through a court-approved scheme of arrangement. Additionally, Reliance has committed to invest Rs 11,500 crore into the joint venture upon closing.
Disney+ Hotstar has experienced a decline in its paid subscriber base, dropping from approximately 55 million to 40 million in the first quarter of FY24. This decline is attributed to Reliance’s Jio Cinema securing exclusive rights for live sports. With the merger, the combined entity will boast the largest over-the-top (OTT) subscriber base in India.
The joint venture is poised to reach over 750 million viewers across India, catering not only to domestic audiences but also to the Indian diaspora worldwide. It is positioned to become a premier destination for entertainment and sports content, consolidating its presence in both television and digital streaming platforms.
Nita Ambani’s leadership in the joint venture between Disney and Reliance marks a significant development in the Indian media landscape. With a strong financial backing and an extensive audience reach, the partnership aims to capitalize on the growing demand for diverse and engaging content in India and beyond.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and TV18 Networks have contributed to the above report
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