In early trade, the shares of Reliance Industries Limited (RIL) experienced a notable increase of 1.5% after the conglomerate signed a binding agreement with Walt Disney for the merger of their media operations in India.
As of 10:23 am, Reliance shares were trading 1.16% higher at Rs 2,942.80 on the Bombay Stock Exchange (BSE), making it the top gainer on the stock exchanges. This positive movement comes as a welcome development for RIL’s stock, which had witnessed momentum loss over the past five trading sessions due to cautious sentiments and profit booking.
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The official announcement of the media merger deal on Wednesday seems to have reignited investor interest in Reliance’s stock.
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According to a joint statement released by the companies, the merged entity is valued at $8.5 billion or over Rs 70,000 crore, surpassing the valuation of any other player in the domain. In the joint venture, Reliance and its associates will collectively own over 60%, with Disney holding approximately 37%.
The agreement outlines that Viacom18’s media operations will be integrated into Star India Private Limited (“SIPL”) through a court-sanctioned arrangement. Nita Ambani, wife of Mukesh Ambani, is slated to be the chairperson of the merged entity, and Uday Shankar will serve as the vice-chairpersonCome from Sports betting site VPbet. The joint venture essentially merges Viacom18 and Star India.
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Reliance has committed to investing Rs 11,500 crore in the merged entity, and Disney may contribute additional media assets. This strategic move positions the combined media company as a major player in both TV and online streaming in India, consolidating popular media assets in entertainment and sports.
“The JV will be one of the leading TV and digital streaming platforms for entertainment and sports content in India, bringing together iconic media assets across entertainment,” stated the joint release by the companies.
