Mukesh Ambani.
Credit: PTI Photo
Mumbai: A day after anti-trust regulator CCI greenlit the mega merger of media assets of RIL and Walt Disney, Reliance Chairman Mukesh Ambani on Thursday said the deal marks the beginning of a new era in India's entertainment industry.
Welcoming Disney to the Reliance family, Ambani said just like Jio and the Retail business, the expanded media business will be an invaluable growth centre in the Reliance ecosystem.
"Let us now talk about our partnership with Disney. This marks the beginning of a new era in India's entertainment industry. We are combining content creation with digital streaming," he said at the RIL AGM.
On Wednesday, Competition Commission of India approved the merger of media assets of Reliance Industries and The Walt Disney Co to create the country's largest media empire worth over Rs 70,000 crore.
Reliance, through holding firm Network 18, owns TV18 news channels as well as a plethora of entertainment (under the 'Colors' brand) and sports channels.
"We will provide world-class digital entertainment across the spectrum," Ambani said, adding that "We will cater to every consumer's taste. We are excited about this partnership."
The joint entity would have two leading OTT streaming platforms Disney Hotstar and Jio Cinema.
"We are combining content creation with digital streaming," Ambani said, adding "our digital-first approach will deliver unparalleled content at affordable prices."
The deal, announced six months ago, faced scrutiny by the anti-trust regulator and the approval came after both the parties proposed certain modifications to the original transaction structure.
Under the deal, Mukesh Ambani-led Reliance Industries Ltd (RIL) and its affiliates will hold 63.16 per cent of the combined entity that will house two streaming services and 120 television channels.
The 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 Sony and Netflix.
Nita Ambani, wife of billionaire and RIL Chairman Mukesh Ambani, will head the joint venture, while Uday Shankar will be the Vice Chairperson.
CCI has cleared the "proposed combination involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited (SIPL) and Star Television Productions Limited (STPL), subject to the compliance of voluntary modifications".
Viacom18 is part of the RIL group, and SIPL is wholly-owned by The Walt Disney Company. STPL, a company incorporated in the British Virgin Islands, is owned indirectly by The Walt Disney.