Reliance seeks approval from CCI for Viacom18-Star India merger, know how the joint venture will be

Billionaire businessman Mukesh Ambani's Reliance Industries Limited (RIL) has sought approval from the Competition Commission of India (CCI) for the merger of its Viacom18 and Star India Private Limited (SIPL). The value of this merger is $8.5 billion. CCI is the fair trade regulator in the country, which ensures competition in the business world.

Reliance Industries has said in its application, 'The purpose of this proposed transaction is to merge the entertainment business of Viacom18, owned by RIL, and Star India, wholly owned by The Walt Disney Company (TWDC). After this deal, the ownership of Star India will jointly come to RIL. RIL also said in its notice that the proposed deal will not have any adverse impact on competition in India.

Star India is currently engaged in multiple media activities including TV broadcasting, motion pictures, and operations including OTT platforms. It is a wholly-owned unit of The Walt Disney Company (TWDC) of America.

At the same time, Viacom18 does the business of broadcasting television (TV) channels and operating over-the-top (OTT) platforms in India and around the world. It also handles the production and distribution of motion pictures.

The world's largest media companies, Walt Disney and Reliance Industries, decided to combine their media businesses in India in February of this year. They have legally committed to generating a massive infusion of Rs 70,000 crore in capital.

After this deal, the joint venture will grow to be the biggest company in the nation's media and entertainment industry. It will have two major OTT platforms and more than 100 channels available in multiple languages. Approximately 75 crore people will watch it nationwide.

The Chairperson of the joint venture will be Nita Ambani, wife of Reliance Industries Chairman Mukesh Ambani. Uday Shankar, however, will serve as the vice-chairman. In this joint venture, Reliance and its affiliates will hold a 63.16 percent stake. Meanwhile, Disney will hold the remaining 36.84 percent stake. Reliance has also agreed to invest around Rs 11,500 crore in a joint venture to expand its OTT business.