EU approves Disney-Reliance entertainment merger in India

The European Union has given its stamp of approval for the formation of a landmark joint venture between Reliance Industries Ltd (RIL) and The Walt Disney Company, marking a pivotal merger in India's entertainment industry, NDTV Profit reports.

The European Commission, the EU's executive arm, approved the creation of Star India Private Limited (SIPL), which will combine assets from Viacom18, StarPlus, and JioCinema, alongside other entertainment businesses from both companies. The Commission noted that the venture "would not raise competition concerns" given its minimal activities in the European Economic Area.

Under the terms of the Rs 70,000-crore merger, RIL will hold a commanding 63.16 per cent stake and commit Rs 11,500 crore in fresh investment, primarily targeting the expansion of over-the-top (OTT) streaming services. Disney will retain the remaining 36.84 per cent shareholding.

The leadership structure will see Nita Ambani, wife of RIL Chairman Mukesh Ambani, assuming the role of chairperson, whilst former Disney executive Uday Shankar will serve as vice chairperson.

The merger has already secured necessary approvals from Indian regulators, including the Competition Commission of India and the National Company Law Tribunal, which gave its consent in August.

The joint venture will unite some of India's most-watched entertainment and sports channels, including Colors, StarPlus, Star Sports, and Sports18. The digital platforms JioCinema and Disney+ Hotstar will also come under the same umbrella, creating a entertainment powerhouse that will reach more than 750 million viewers across India.