Walt Disney partners with Reliance Industries in India
Date
2/29/2024 4:12:12 AM
(MENAFN) On Wednesday, The Walt Disney Company unveiled a strategic joint venture in collaboration with Reliance Industries Limited, a Mumbai-based multinational conglomerate. This significant partnership aims to amalgamate the operations of Disney's Star India with Viacom18, an entity in which Reliance Industries holds a majority stake. The venture marks a pivotal move by both companies to leverage their respective strengths and expand their presence in the Indian market.
Under the joint venture, Disney-owned Star India and Viacom18 will integrate their businesses to create a formidable presence in the Indian media and entertainment landscape. The alliance between these two major players is expected to result in synergies that enhance content offerings, distribution capabilities, and market reach across various platforms.
The strategic collaboration underscores Disney's commitment to strengthening its foothold in India, a key market with immense growth potential in the media and entertainment industry. By joining forces with Reliance Industries, Disney aims to capitalize on Viacom18's established presence and market leadership in India to drive innovation, creativity, and audience engagement.
"As part of the transaction, the media undertaking of Viacom18 will be merged into Star India Private Limited through a court-approved scheme of arrangement," Disney stated in a declaration.
Reliance's commitment to the joint venture involves a significant investment of USD1.4 billion, which forms a crucial component of its growth strategy in the media and entertainment sector. This transaction, indicative of Reliance's confidence and strategic vision, values the joint venture at an impressive USD8.5 billion, reflecting the substantial potential and market opportunities envisioned by both parties.
Upon the successful conclusion of the transaction, the ownership and control of the joint venture will be distributed as follows: Reliance will hold a 16.34 percent stake, underscoring its substantial contribution to the partnership; Viacom18 will possess a majority ownership of 46.82 percent, leveraging its established position and market presence; and Disney will maintain a significant ownership share of 36.84 percent, reflecting its strategic alliance and commitment to the venture's success.
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