Reliance Industries has completed the mega-merger deal with American multinational mass media and entertainment conglomerate, Disney to create a joint venture together to bring India's powerhouse worth Rs 70,532 crore ($8.5 billion) in the sector. The deal involves subsidiaries like RISE Worldwide, Football Sports Development, Viacom18, Star India and Digital18 Media.
Reliance-Disney Merger Deal:
The following mergers are completed to form the Rs 70,532 crore joint venture with effect from November 14, 2024:
- Reliance and RISE Worldwide, a wholly owned subsidiary of the company, sold entire equity shares held by them representing 65% in Football Sports Development (FSDL) to Viacom 18 Media is the material subsidiary of Network 18 Media & Investments, for an aggregate consideration of Rs 94.54 crore.
Notably, this investment by Viacom18 in FSDL stands transferred to Star India (SIPL), in terms of the composite scheme of arrangement among Viacom18 and its shareholders and creditors & Digital18 Media Limited and its shareholders and creditors & SIPL and its shareholders and creditors. FSDL continues to be controlled by the Company.
- Further, Reliance acquired shares representing 63.16% of Star Television Productions Limited ("STPL") from the existing Disney shareholder of STPL, for a consideration of Rs. 211.59 crore. With this acquisition, STPL has become a subsidiary of Reliance.
Incorporated on February 1, 1991, Star Television is engaged in the business of licensing intellectual property rights and owns the "STAR" and "HOTSTAR" trademarks.
As per the filing, a scheme of arrangement for the merger of STPL with SIPL has been filed with the Hon'ble National Company Law Tribunal, Mumbai bench and is pending sanction. Upon merger of STPL with SIPL, SIPL will own these trademarks and the Company will be allotted shares of SIPL as consideration for the merger.
- Additionally, Reliance acquired Paramount Global's entire 13.01% of the diluted equity share capital in Viacom18 for a consideration of Rs. 4,286 crore. Viacom18 is a material subsidiary of Network18 Media & Investments Limited and with this acquisition, the Company holds 70.49% (on a fully diluted basis) of Viacom18.
- Moreover, Reliance pumped in Rs 11,500 crore in SIPL and has been allotted 26,05,19,406 equity shares.
That being said, the composite scheme among Viacom18 and its shareholders and creditors & Digital18 Media Limited and its shareholders and creditors & SIPL and its shareholders and creditors has become effective from November 14. Accordingly, SIPL has allotted 74,61,50,236 equity shares to Viacom18.
Due to this, SIPL (the JV) is controlled by the Company and owned 16.34% by the Company, 46.82% by Viacom18 and 36.84% by Disney.
India's largest conglomerate in terms of market cap, on November 14 said, "Reliance and Disney announce the completion of the transaction to form a joint venture to bring together the most iconic and engaging entertainment brands in India."
The Mukesh Ambani-backed stock will be in focus next week.
Click it and Unblock the Notifications
Sign in with Google