Reliance, Disney announce giant India media merger

MUMBAI, Feb 29 (AFP): India's Reliance Industries and Walt Disney have agreed to merge their Indian media businesses, creating a $8.5 billion entertainment giant in the world's most populous nation.

India's entertainment market is already one of the world's biggest, with the merger expected to further shake up the multi-billion-dollar industry.

The two companies had signed "binding definitive agreements" to form a joint venture that will combine the businesses of Reliance-backed Viacom18 and Star India, a joint statement by the firms said late Wednesday.

Reliance, an oil-to-telecom conglomerate led by billionaire tycoon Mukesh Ambani, will invest $1.4 billion into the new company.

The statement said Disney will hold 36.8 per cent, Reliance will hold a 16.3 per cent stake, and Viacom18 another 46.8 per cent.

"This is a landmark agreement that heralds a new era in the Indian entertainment industry," Ambani said.

His wife, Nita Ambani, will serve as its chairperson.

The merger will create an entertainment powerhouse that will have more than 100 television channels and two streaming platforms.