The merger of Reliance Industries’ (RIL) Viacom18 with Walt Disney’s Star India, valued at $8.5 billion, is set to conclude on Monday, according to sources familiar with the matter, marking the end of a nearly year-long process. Announced in February, this significant merger encompasses over 100 channels and two streaming platforms, following exclusive negotiations that began in December 2023 in London.
No response was received from an email sent to Viacom18 before publication, and Disney Star declined to comment when approached.
The merger’s conclusion will reportedly be publicized after a board meeting led by Nita Ambani. Uday Shankar, co-founder of Bodhi Tree Systems, is expected to serve as vice-chairman of the new entity, which will be named Star India. Reliance will hold a 56% stake, Disney will acquire 37%, and Bodhi Tree Systems will retain a 7% stake in the combined operation.
According to sources, Kevin Vaz and Kiran Mani, currently the CEOs of broadcast and digital sectors at Viacom18, will take on co-CEO roles in the new organization. Vaz, who previously worked at Disney Star, will focus on the broadcast and entertainment division, while Mani, an ex-Google executive, will lead the digital and sports sector.
The merger will result in a combined workforce of approximately 8,000 employees, although industry insiders anticipate a reduction in headcount to remove overlap and address redundancies. K Madhavan, Disney Star’s country manager and president, along with Sajith Sivanandan, head of Disney+ Hotstar, have already resigned, with more departures expected.
The market is watching closely to see how the merged entity will position itself in India’s media landscape, particularly after the recent $10 billion merger deal between Zee and Sony fell through.
The Competition Commission of India (CCI) approved the merger on August 28, subject to modifications voluntarily proposed by the companies, which included the divestment of seven channels, specifically regional channels in Bengali, Marathi, and Kannada that exceeded a market share of 35-40%.
Additionally, the companies have committed not to raise advertising rates for TV and digital streaming to unreasonable levels and have agreed not to bundle ad slots for cricketing rights related to the Indian Premier League (IPL), International Cricket Council (ICC), and Board of Control for Cricket in India (BCCI) during the current rights period.