Significant investments are being made in sports and digital content, and both areas will remain core priorities as the joint venture takes shape. The merger is expected to close in the fourth quarter of 2024 or the first quarter of 2025.
The joint venture between Star and Viacom 18 is expected to catapult Ambani's RIL to the top of the M&E industry.
Star and Viacom18's combined revenue of Rs 24,411 crore in FY23 surpassed the combined revenue of Zee Entertainment Enterprises, Sony Pictures Networks India and Sun TV Networks of Rs 18,543 crore.
Star India's revenue for FY23 was Rs 19,857 crore and Viacom 18's was Rs 4,554 crore. Zee, Sony and Sun TV's revenues were Rs 8,087 crore, Rs 6,684 crore and Rs 3,772 crore, respectively.
The Star-Viacom18 joint venture will have a vast 117 TV channels across content genres like general entertainment, sports, kids, movies etc. The proposed combined entity will also have two powerful streaming platforms – Disney+ Hotstar and JioCinema.
The two companies combined account for over 40% of TV viewership, according to Broadcast Audience Research Council (BARC) data. Disney+ Hotstar is the largest subscription video-on-demand (SVOD) operator with 38 million subscribers. JioCinema, an advertising VOD platform, attracted an average of 240 million viewers in the April-June 2023 quarter, according to Data.ai.
The merger between Star and Viacom18 will give them a virtual cricket content monopoly, owning media rights including the IPL and ICC, as well as bilateral rights with the Indian, Australian and South African cricket boards. The two companies have committed to spending around $10 billion on sports rights between 2023 and 2027.
RIL, RIL-controlled Viacom18 and Walt Disney on Wednesday said they have entered into a definitive agreement to merge Viacom18's media business with Star India and form a joint venture through a court-approved scheme of arrangement.
The Star-Viacom18 joint venture is valued at Rs 70,352 crore post-money, with RIL having control over the joint venture.
RIL, Viacom18 and Disney will own 16.34%, 46.82% and 36.84% of the joint venture respectively. Currently, the RIL group, including TV18, owns 71.02% of Viacom18, followed by Bodhi Tree with 15.97% and Paramount with 13.01%.
TV18 is in the process of merging with Network18 Media and Investments. Post-merger, Viacom18 will become a direct subsidiary of Network18 and will also hold the group's television, print and digital news assets, including News18 Network, moneycontrol.com and Forbes India magazine.
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