MxMIndia

Tag: RIL

  • The Reliance-Disney deal in 10 points

    The Reliance-Disney deal in 10 points

    1. Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18) and The Walt Disney Company (Disney) announced on Wednesday the signing of binding definitive agreements to form a joint venture that will combine the businesses of Viacom18 and Star India. As part of the transaction, the media undertaking of Viacom18 will be merged into Star India Private Limited (SIPL) through a court-approved scheme of arrangement.

    2. The Board of Directors of the Company, at its meeting held on Wednesday, approved primary investment of Rs 11,500 crore (~US$ 4 billion) in Star India Private Limited (SIPL) to acquire 16.34% of the paid up equity share capital of SIPL in terms of the subscription agreement between the Company and SIPL. SIPL was incorporated on February 8, 1994. The turnover of SIPL, as per its audited standalone financial statement, for financial years 2022-23, 2021-22 and 2020-21 was Rs 17,332.78 crore, Rs 15,500.77 crore and Rs 11,761.90 crore, respectively.

    3. The transaction values the JV at ₹70,352 crore (~US$ 8.5 billion) on a post-money basis, excluding Post completion of the above steps, the JV will be controlled by Reliance Industries (RIL) and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney. Disney may also contribute certain additional media assets to the JV, subject to regulatory and third-party approvals. Currently, Paramount also has 13% stake in Viacom18, but there are rumours that it may exit the venture in some time.

    4. Uday Shankar and James Murdoch (Lupa Systems) own Bodhi Tree Systems which owns 13% of Viacom18.

    5. Nita M Ambani will be the Chairperson of the JV, with Uday Shankar as Vice Chairperson providing strategic guidance to the JV.

    6. Disney to provide content licence to the joint The JV see the coming together of the linear TV and digital streaming properties from both stables. That is: Star Plus, Colors, Star Sports and Sports18. All the regional channels.

    7. Jio Cinema and Hotstar are likely to be merged.

    8. The JV will have over 750 million viewers across India and will also cater to the Indian diaspora across the world. So basically it will be the combination of the media expertise, cutting-edge technology and diverse content libraries of Viacom18 and Star Plus the domestic and global entertainment content and sports livestreaming services. Also. Disney’s films and shows to Viacom18’s renowned productions and sports offerings. The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a licence to more than 30,000 Disney content assets, providing a full suite of entertainment options for the Indian consumer.

    9. The transaction is subject to regulatory, shareholder and other customary approvals and is expected to be completed in the last quarter of Calendar Year 2024 or first quarter of Calendar Year 2025. This includes the all-important clearances from the Competition Commission of India (CCI).

    10. The news operations of Reliance Industries (under Network18 Media & Investments Limited) are not part of this deal.

  • RIL has announced joint partnership with Eros India to set up a Rs 1,000 crore (USD150 million) fund to co-produce and consolidate content

    RIL appoints Jyoti Deshpande to head M&E biz, acquires stake in Eros

    By A Correspondent

     

    Reliance Industries Limited and Eros International PLC have announced that RIL, through a subsidiary, has agreed to subscribe to a 5%  equity stake in the NYSE-listed Eros at a price of USD15 per share, which represents an 18% premium to last closing price. The transaction is subject to customary regulatory and other approvals.

     

    Furthermore, RIL and Eros International Media Limited (“Eros India”) announced that they have agreed to partner in India to jointly produce and consolidate content from across India. The parties will equally invest up to Rs 1,000 crores in aggregate (approximately USD150 million) to produce and acquire Indian films and digital originals across all languages.

     

    In addition, it was announced that Ms. Jyoti Deshpande, Group CEO and MD of Eros will be stepping down from her executive role after more than 17 years in Eros and move on to head the Media and Entertainment business at RIL as President of the Chairman’s Office. Deshpande will start her role at RIL from April 2018, but will continue to remain as a Non-Executive Director on the Board of Eros. Mr. Kishore Lulla will resume his position of Group Chairman and CEO of Eros.

     

    In her new role at RIL, Deshpande will lead the company’s initiatives in Media and Entertainment to organically build and grow businesses around the content ecosystem such as Broadcasting, Films, Sports, Music, Digital, Gaming, Animation etc., as well as integrate RIL’s existing media investments such as Viacom and Balaji Telefilms with a view to build, scale and consolidate the fragmented USD 20 billion Indian M&E sector.

     

    Said Mukesh Ambani, Chairman & Managing Director, RIL, in a statement: “We are pleased to join hands with Eros, as it will bring further synergies into our plans, making for a win-win partnership. We are delighted to welcome Ms. Jyoti Deshpande into the Reliance family and believe that she will not only give wings to our plans but also play a pivotal role in transforming the sector.”

     

     

  • HDFC chairman Deepak S Parekh and McKinsey senior adviser Adil Zainulbhai inducted as Independent Directors while Raghav Bahl will be on the Board as a Non-executive Director

    Reliance Industries completes acquisition of Network18

    By A Correspondent

     

    HDFC chairman Deepak S Parekh and McKinsey senior adviser Adil Zainulbhai have been inducted as Independent Directors on the board of NW18. Meanwhile, RIL also informed that Raghav Bahl will continue to be on the Board of NW18 as a Non-executive Director

     

    Reliance Industries Limited (RIL) announced on Monday (July 7) that Independent Media Trust (IMT) of which RIL is the sole beneficiary, has completed the acquisition of control of Network 18 Media and Investments Limited (NW18) including its subsidiary TV18 Broadcast Limited (TV18).

     

    Apart from nominees of IMT, HDFC chairman Deepak S Parekh and McKinsey senior adviser Adil Zainulbhai have been inducted as Independent Directors on the board of NW18. Meanwhile, RIL also informed that Raghav Bahl will continue to be on the Board of NW18 as a Non-executive Director.

     

    With the completion of this transaction, IMT and RIL have become promoters of NW18 and TV18. The open offers to the public shareholders for acquisition of equity shares of NW18, TV18 and Infomedia Press Ltd. as announced on May 29, 2014 by IMT are in process and the Draft letter of offer has been filed with SEBI for its comments.