2024-03-12 15:49:12
Mukesh Ambani, the richest man in India and Asia, is preparing to create a stir in the media, entertainment and sports industries after telecom and retail. After the merger of Reliance’s company Viacom18 and Disney’s Star India, a company worth $ 8.5 billion has been created. It is the largest media and entertainment company in the country. It has over 750 million viewers, over 200,000 hours of content and media rights for cricket. This can prove to be a game changer not only in India but across the world. Know what is Mukesh Ambani’s plan…
command to Nita Ambani
Mukesh Ambani’s wife Nita Ambani has been made the chairperson of Viacom18-Disney. Last year he left the board of Reliance Industries and after that he has been given the command of a business for the first time. Nita Ambani has been associated with sports but this is her entry into the world of media for the first time. Here they compete with Sony, Netflix and Amazon’s Prime Video. This sector is very close to Mukesh Ambani’s heart. He has invested Rs 22,000 crore in it through Viacom18. Now the responsibility of taking it forward lies on the shoulders of Nita Ambani.
Why did the merger happen?
Disney bought Star India in 2019. But its problems increased after it lagged behind Viacom18 in purchasing the digital rights of IPL in 2022. At one time the valuation of Star India was 15 billion dollars, which came down to 3 billion dollars. This caused Disney to rethink the star’s future. Ultimately they decided to form a joint venture with Reliance. Disney has suffered huge losses due to losses in streaming and TV business, due to which the company’s stock reached its lowest level in nine years in August last year.
How big is the merged entity?
The board of the company formed after the merger will have five directors from Reliance and three from Disney. There will also be two independent directors. In this, Reliance and Viacom18 will have 63 percent stake and Disney will have 37 percent stake. This company will have more than 40 percent share in the TV and OTT markets. Its combined operating revenue in financial year 2023 was Rs 25,000 crore.
Jugalbandhi of Disney and Reliance
Mukesh Ambani’s love for scale and size is not hidden from anyone. After taking over the reins of Network18 from Raghav Bahl in 2014, Mukesh Ambani has always dreamed of making it the biggest media umpire of the country. But Viacom18 remained small compared to Star, Zee and Sony. The company tried to buy Sony’s India unit but talks could not be reached regarding shareholding and valuation. Finally in 2020, Reliance got rid of it. After this, Reliance tried to merge with Zee but the promoters of Zee rejected Reliance’s offer and joined hands with Sony. But this deal also fell apart in January. Finally, Reliance found a partner in the form of Disney.
Uday Shankar likes challenge
Uday Shankar, Vice Chairman of Viacom18-Disney, left Disney-Star India in 2020 and took the digital path. His passion for digital was such that he removed the TV from his room. But once again they may have to turn to TV because Viacom18-Disney runs more than 100 channels. But his biggest challenge will be to transform the streaming and sports business. But Uday Shankar says, ‘When there is no big challenge, I get bored.’