Reliance Industries to close Disney India acquisition by Q3 next year

Reliance Industries Ltd is set to finalize its merger with Disney’s India operations by the close of Q3 FY25, forming India’s largest media conglomerate, valued at over ₹70,000 crore ($8.5 billion), according to regulatory filings.

With approvals from the Competition Commission of India (CCI) and the National Company Law Tribunal, Reliance Industries confirmed in its latest quarterly report that the regulatory hurdles for the merger have been cleared.

“The merger of TV18 Broadcast Ltd. (TV18) and e-Eighteen.com Ltd. (E18) with Network18 Media & Investments Ltd. (Network18) was sanctioned by the National Company Law Tribunal, Mumbai Bench, and became effective on October 3, 2024,” the company said in its Q2 results.

The companies are in the process of securing additional required approvals, with the “record date for determining the equity shareholders of TV18 and E18 entitled to receive Network18 equity shares set for October 16, 2024,” the report added.

On September 27, the Indian government approved the transfer of licenses for non-news TV channels from Reliance to Star India, a key step in the merger, according to reports.

Upon completion, Reliance and its affiliates will hold a 63.16% majority stake in the newly merged entity, while Walt Disney will retain a 36.84% shareholding. Reliance has committed to investing ₹11,500 crore ($1.4 billion) to boost the joint venture.

Nita Ambani will chair the new venture, with media honcho Uday Shankar as the vice-chair. The combined company will have two streaming platforms and 120 television channels, including renowned brands like Comedy Central, MTV, Nickelodeon, and Star network channels.

Mukesh Ambani’s Reliance Industries Pitching for Stake in Karan Johar’s Dharma Productions: ET Report

Mukesh Ambani’s Reliance Industries Ltd. (RIL) is reportedly in discussions to acquire a stake in Dharma Productions, a prominent Bollywood film production house owned by Karan Johar. According to sources quoted by the Economic Times, this potential deal aims to bolster Reliance’s expanding media and entertainment portfolio, although the exact size of the stake under negotiation remains undisclosed.

Karan Johar, who currently owns a 90.7% stake in Dharma Productions, has been looking to monetize his holdings for some time. Previous attempts to sell part of his stake faced challenges due to disagreements over valuation, noted the report.

Founded by Yash Johar in 1979 and now led by his son Karan, Dharma Productions has gained acclaim for producing numerous successful Bollywood films. Its notable hits include the 1980 film Dostana, the critically acclaimed Agneepath in 1990, and romantic comedies like Kuch Hota Hai and Kal Ho Naa Ho. Recent successes include the biopics Gunjan Saxena: The Kargil Girl and Sher Shah, released in 2020 and 2021, respectively. In addition, the company launched subsidiaries like Dharma 2.0 in 2016 for advertising and Dharmatic Entertainment for OTT content production in 2018.

For Reliance Industries, this acquisition enables to widen its footprint in India’s content production sector. RIL’s media and entertainment division combines already Jio Studios, Network18 Media & Investments, Colosceum Media, and the CNBC Group, besides digital platforms like First Post, Moneycontrol.com, and Voot. Additionally, in 2017, Reliance acquired a 24.9% minority stake in Balaji Telefilms.

Jio Studios has emerged as one of India’s largest film studios, recently achieving success with Star 2, which became the highest-grossing Hindi film.

Dharma Productions presents an appealing opportunity for Reliance due to its strong brand and impressive track record in Bollywood. In FY23, the production house reported a revenue increase to ₹1,040 crore, despite a 59% drop in net profit primarily due to rising operational costs.

As competition from OTT platforms intensifies and content production costs escalate, companies like Dharma are seeking partnerships to achieve financial stability and adapt to the evolving market landscape.