NCLT shows green light for merger of Reliance's Viacom18 and Disney's Star India
02 Sep 2024
![NCLT shows green light for merger of Reliance's Viacom18 and Disney's Star India NCLT shows green light for merger of Reliance's Viacom18 and Disney's Star India](/Uploads/Images/dd127853-b069-4746-b41a-55522ebbfd2a-Reliance-&-Disney.jpg)
A day after the Competition Commission of India gave its conditional approval for merger of entertainment platforms Walt Disney’s Star India and Reliance Industries’ Viacom-18 Private Ltd, the National Company Law Tribunal (NCLT) on Friday granted approval for the proposed $8.5 billion merger that would create a giant in India’s entertainment industry.
The approval granted by judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh, in Mumbai, brings together two OTT video streaming platforms – Disney Hotstar and Jio Cinema – creating an entertainment giant in the television and digital entertainment space.
The NCLT order is conditional that the two entities seek approval from the ministry of information and broadcasting for the transfer of TV channels from Viacom18 to Star India.
NCLT has also directed the two companies to file its order and the approved scheme with the Registrar of Companies within 30 days. Besides the companies have been directed to present the order to the Superintendent of Stamps for stamp duty adjudication, if applicable, within 60 days.
If the two companies modify the deal structure as agreed to before the CCI and the NCLT, and address regulatory concerns the merger is expected to be completed by the end of the current year or early next year.
Besides the entertainment and sports channels, Reliance, through its holding firm Network 18, also owns TV18 news other TV channels under the 'Colors' brand
The combination of all these with the newly merged entity will create the country’s biggest media group, that will compete with the likes of Sony, Netflix and Amazon.
The board of the newly merged entity will have 10 members – five of RIL, three representing Disney and two independent directors.
Nita Ambani will assume the role of chairperson of the merged entity, while former Walt Disney executive Uday Shankar will become its vice chairperson.
The joint venture's ownership structure will consist of RIL will hold 16.34 per cent stake in the joint venture while Viacom18 will hold 46.82 per cent, and Disney 36.84 percent. With the combined majority stake RIL will retain control of the merged entity.