M&A

M&A

Reliance, Disney to merge Indian media businesses to create $8.5 B JV

Press Release  

Reliance Industries Ltd (RIL) and US-headquartered Walt Disney Company (Disney) have agreed to merge their media operations in India. As part of the deal, the media undertaking of RIL Group firm Viacom18, will be merged into Star India. In addition, RIL has agreed to invest INR 11,500 crore (about USD 1.4 Billion) into the JV. The transaction values the JV at INR 70,352 crore (about USD 8.5 Billion) post-money. The JV will be owned 16.34% by RIL and will be controlled by it. Viacom18 will own 46.82% and Disney, 36.84%. Nita Ambani will be the chairperson of the JV, and Uday Shankar, vice chairperson.The JV will bring together media assets across entertainment (e.g. Colors, StarPlus, StarGOLD) and sports (e.g. Star Sports and Sports18) including access to events across television and digital platforms through JioCinema and Hotstar. The JV will have over 750 million viewers across India and will also cater to the Indian diaspora across the world. The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a licence to more than 30,000 Disney content assets.Goldman Sachs is acting as the financial and valuation advisor to RIL Group on the deal; Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co and Shardul Amarchand Mangaldas & Co are acting as legal counsels to RIL and Viacom18 on the transaction. Ernst & Young provided an independent valuation to RIL and Viacom18, while HSBC India provided a fairness opinion to Viacom18.Raine Group is acting as lead financial advisor to Disney on the transaction and Citi as financial advisor. Cleary Gottlieb served as lead outside legal counsel to Disney and Covington & Burling and AZB served as legal counsels. BDO has provided an independent valuation to Star India.