This move placates regulators while still positioning the merged entity to dominate the broader entertainment market. With over 120 TV channels and two major streaming platforms under one umbrella, the merged enterprise will cater to an estimated 750 million Indian viewers, according to company statements.
Disney’s $8.5B India Media Merger : A Merger to Challenge Global Streaming Giants
With the merger, Disney and Reliance are poised to become the undisputed kingpins of India’s entertainment industry. Their reach would easily dwarf that of competitors like Netflix and Amazon Prime in the country, leveraging Disney’s content prowess and Reliance’s vast distribution network. The companies have stated that the combined entity’s platforms will serve a massive and diverse audience, particularly through both entertainment and sports programming.
Reliance will hold approximately 16% of the merged company, while its subsidiary Viacom18 will take the largest stake with 47%. Disney is expected to retain around 37% of the new venture. As part of the deal, Reliance has also committed to injecting an additional $1.4 billion into the joint enterprise, with Disney potentially adding more media assets depending on regulatory approvals.
Disney’s $8.5B India Media Merger : Legal Teams Behind the Mega Deal
Top-tier legal advisors have been guiding this intricate merger. Disney is represented by Cleary Gottlieb Steen & Hamilton LLP, with additional counsel from Covington & Burling LLP and India’s AZB & Partners. Meanwhile, Reliance and Viacom18 are supported by Skadden Arps Slate Meagher & Flom LLP and Indian law firms Khaitan & Co. and Shardul Amarchand Mangaldas & Co.
