MIB approves transfer of TV channel licenses from Viacom18 to Star India

According to a stock exchange filing by Reliance Industries, the Ministry of Information and Broadcasting (MIB) has approved the transfer of TV channel licenses from Viacom18 to Star India. "The Ministry of Information and Broadcasting, Government of India, vide its order dated September 27, 2024, has granted its approval for transfer of Licenses relating to Non News & Current Affairs TV channels held by Viacom18 Media Private Limited in the favour of Star India Private Limited subject to conditions laid by the Competition Commission of India," said the order. 

Reliance-owned Viacom18 is all set to merge with Walt Disney's Star India, creating a media powerhouse valued at $8.5 billion. Viacom18's 40 TV channels will join Star's 77, expanding the portfolio to 117 channels across various genres, including general entertainment, sports, kids and youth programming. 

The Ministry's approval is the last clearance needed to finalise the mammoth merger that was announced on February 28, 2024. The merger has already received approvals from the National Company Law Tribunal (NCLT) and the competition watchdog Competition Commission of India (CCI). A full order on the merger from the CCI is expected soon. 

According to reports, Viacom18 will transfer its assets to a wholly-owned subsidiary, Digital18, which will then transfer them to Star India in exchange for shares, effectively merging the two companies into a unified structure. Following this, Star India will operate as the main company, with Reliance Industries holding a 56% stake in the entity. Walt Disney will hold a 37% share in the combined entity with Uday Shankar and James Murdoch's Bodhi Tree Systems, being a minority holder in Viacom18, owning the remaining 7%. 

Post the awaited merger, Nita Ambani, the director of Reliance Industries will assume the role the chairperson meanwhile, Uday Shankar the former CEO of Star India will be the vice-chairperson.