Deal with Disney marks new era in India's entertainment industry, says Mukesh Ambani

A day after anti-trust regulator CCI greenlit mega merger of media assets of RIL and Walt Disney, Reliance Chairman Mukesh Ambani on Thursday said deal marks beginning of a new era in India's entertainment industry.

Welcoming Disney to Reliance family, Ambani said just like Jio and Retail business, expanded media business will be an invaluable growth centre in Reliance ecosystem.

"Let us now talk about our partnership with Disney. This marks beginning of a new era in India's entertainment industry. We are combining content creation with digital streaming," he said at RIL AGM.

On Wednesday, Competition Commission of India approved merger of media assets of Reliance Industries and Walt Disney Co to create country's largest media empire worth over Rs 70,000 crore.

Reliance, through holding firm Network 18, owns TV18 news channels as well as a plethora of entertainment (under 'Colors' brand) and sports channels.

"We will provide world-class digital entertainment across spectrum," Ambani said, ding that "We will cater to every consumer's taste. We are excited about this partnership."

joint entity would have two leing OTT streaming platforms Disney Hotstar and Jio Cinema.

"We are combining content creation with digital streaming," Ambani said, ding "our digital-first approach will deliver unparalleled content at affordable prices."

deal, announced six months ago, faced scrutiny by anti-trust regulator and approval came after both parties proposed certain modifications to original transaction structure.

Under deal, Mukesh Ambani-led Reliance Industries Ltd (RIL) and its affiliates will hold 63.16 per cent of combined entity that will house two streaming services and 120 television channels.

Walt Disney will hold remaining 36.84 per cent stake in 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 joint venture to give it muscle to fight rivals like Sony and Netflix.

Nita Ambani, wife of billionaire and RIL Chairman Mukesh Ambani, will he joint venture, while Uday Shankar will be Vice Chairperson.

CCI has cleared "proposed combination involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited (SIPL) and Star Television Productions Limited (STPL), subject to compliance of voluntary modifications".

Viacom18 is part of RIL group, and SIPL is wholly-owned by Walt Disney Company. STPL, a company incorporated in British Virgin Islands, is owned indirectly by Walt Disney.