INSUBCONTINENT EXCLUSIVE:
Merger of Reliance group's media assets TV18 Broadcast and E18 with Network18 Media & Investments has already been sanctioned by the NCLT |
(Photo: Shutterstock)3 min read Last Updated : Oct 15 2024 | 6:54 AM IST
The merger of media assets of Reliance Industries and the India
business of global media house the Walt Disney is expected to be complete by the end of the third quarter of this fiscal, according to a
regulatory filing by billionaire Mukesh Ambani-led group.
The fair trade regulator CCI has already approved the merger of Viacom 18 and
Star India and NCLT (National Company Law Tribunal) has sanctioned the scheme regarding it.Click here to connect with us on WhatsApp
"The
companies are in the process of obtaining other requisite approvals for the completion of the transaction and transaction closer is expected
assets - TV18 Broadcast and E18 - with Network18 Media & Investments has already been sanctioned by the NCLT and was made effective on
October 3, it said.
Earlier on September 27, the government approved the transfer of licenses relating to Non News & Current Affairs TV
channels held by media entities of Reliance Industries to Star India.
The Ministry of Information and Broadcasting, Government of India,
vide its order dated September 27, has granted its approval for transfer of Licenses relating to Non News & Current Affairs TV channels held
by Viacom18 Media Private Limited in favour of Star India, it had said.
Viacom18 is the holding company that owns the media and
entertainment business of billionaire Mukesh Ambani-led Reliance Industries and Bodhi Tree Systems.
Both sides are in the final stages of
the merger, making some adjustments in the business as per the Competition Commission of India (CCI) directions.
On August 30, the NCLT
had approved the scheme of merger of Viacom18 Media and Digital 18 Media, holding media and entertainment assets of Reliance Industries with
Star India.
The scheme had proposed the transfer and vesting of Media Operations Undertaking from Viacom 18 and Jio Cinema into Digital18,
which is a subsidiary of Viacom 18
This would be followed by "demerger, transfer and vesting of V18 Undertaking from Digital 18 into Star India".
The merger of the media
assets of Reliance Industries and The Walt Disney Co.'s India business will create the country's largest media empire worth over Rs 70,000
crore.
Earlier, the CCI had said it has cleared the "proposed combination involving Reliance Industries Ltd, Viacom18 Media Pvt Ltd,
Digital18 Media Ltd, Star India Pvt Ltd and Star Television Productions Ltd, subject to the compliance of voluntary
modifications".
Viacom18 is part of the RIL group, and Star India is wholly owned by The Walt Disney Company
Star Television Productions, a company incorporated in the British Virgin Islands, is owned indirectly by Walt Disney.
The CCI, however,
did not disclose voluntary modifications in the original deal made by the two parties.
As per the deal, Mukesh Ambani-led RIL and its
affiliates will hold 63.16 per cent of the combined entity that will house two streaming services and 120 television channels.
Walt Disney
will hold the remaining 36.84 per cent stake in the combined entity, which will also be India's largest media house.
Reliance Industries
has also agreed to invest close to Rs 11,500 crore into the joint venture to give it the muscle to fight rivals like Japan's Sony and
Netflix.
Nita Ambani, wife of billionaire and RIL Chairman Mukesh Ambani, will head the joint venture, while Uday Shankar will be the
vice-chairperson.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the
content is auto-generated from a syndicated feed.)First Published: Oct 15 2024 | 6:54 AMIST
