- 26 Feb 2024
- ICICI Securities
MEDIA REPORTS INDICATE BINDING AGREEMENT WITH DISNEY TO MERGE VIACOM18 AND STAR INDIA
News: Reliance Industries and the Walt Disney Company have signed a binding agreement to merge Viacom18 and Star India, with the deal expected to be announced early this week, as per ET reports. The deal will create India's largest media empire, spanning TV broadcasting, streaming, movies and sports. Reliance may own 61% of the proposed combined company, with Disney holding 33% and Bodhi Tree Systems having the remaining 6%.
Views: The two media companies generated revenue of ₹25,000 crore between them in FY23. The proposed combined Star-Viacom18 entity will be a dominant force in the TV broadcasting industry, with more than 100 TV channels like Star Plus, Colors and Star Sports. The entity will also have two streaming platforms, Disney+ Hotstar and JioCinema, with dominant market shares in subscription and advertising video-on-demand segments.
Impact: Positive