Government Approves License Transfer to Star India: Reliance's Viacom18-Disney Merger

The transfer of licenses for non-news and current affairs TV stations from the media companies of the billionaire Mukesh Ambani-led Reliance Industries to Star India has been approved by the government.

Reliance Industries and TV18 Broadcast filed regulatory reports stating that the approval was given by the Ministry of Information and Broadcasting via an order dated September 27.

"The Ministry of Information and Broadcasting, Government of India, vide its order dated September 27, 2024, has granted its approval for transfer of Licenses relating to Non News & Current Affairs TV channels held by Viacom18 Media Private Limited in favour of Star India," it said. This is "subject to conditions laid by the Competition Commission of India" .

Reliance Industries and Bodhi Tree Systems' media and entertainment businesses are owned by Viacom18, the holding company. Now that the merger is nearing its conclusion, both parties are adjusting their businesses in accordance with the Competition Commission of India's (CCI) guidelines.

The merger of Viacom18 Media and Digital 18 Media, which hold Reliance Industries' media and entertainment holdings, with Star India was approved by the NCLT on August 30.

The plan called for Media Operations Undertaking to be vested in Digital18, a Viacom 18 subsidiary, and transferred from Viacom 18 and Jio Cinema.

"Demerger, transfer and vesting of V18 Undertaking from Digital 18 into Star India" would come next. The country's largest media empire, valued at over Rs 70,000 crore, would be created by the merging of Reliance Industries' and The Walt Disney Co.'s media businesses.

The CCI had previously stated that it has authorized the "proposed combination involving Reliance Industries Ltd, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd and Star Television Productions Ltd, subject to the compliance of voluntary modifications" . The Walt Disney Company is the sole owner of SIPL, while Viacom18 is a part of the RIL group. Walt Disney has an indirect ownership stake in STPL, a business that was established in the British Virgin Islands.

However, the two parties' voluntary changes to the original agreement were not disclosed by the CCI. The agreement states that the combined company, which will house two streaming services and 120 television channels, will be owned by the Mukesh Ambani-led RIL and its affiliates with 63.16 percent. The remaining 36.84 percent of the combined company, which would become India's biggest media company, will be owned by Walt Disney.

Additionally, Reliance Industries has committed to investing nearly Rs 11,500 crore in the joint venture, giving it the strength to take on competitors like Netflix and Sony of Japan. The joint venture will be run by Nita Ambani, the wife of RIL Chairman Mukesh Ambani, with Uday Shankar serving as vice-chairperson.