The Ministry of Information and Broadcasting has approved the transfer of TV channel licences from Viacom18 to Star India, subject to conditions set by the Competition Commission of India, according to a stock exchange filing by Reliance Industries Ltd.
Reliance-owned Viacom18 is merging with Walt Disney’s Star India, creating a media powerhouse valued at $8.5 billion. Viacom18’s 40 TV channels will join Star’s 77, expanding the portfolio to 117 channels across various genres, including general entertainment, sports, kids and youth programming.
This ministry approval is the last clearance needed to finalise the merger announced on February 28. The deal has already received approvals from the National Company Law Tribunal (NCLT) and the competition watchdog.
The Competition Commission’s approval, granted on August 28, is contingent upon compliance with voluntary modifications to the merger scheme. A full order of the commission is expected soon.
On August 30, the Mumbai bench of the NCLT sanctioned the merger scheme, under which Viacom18 will first transfer its assets to a wholly owned subsidiary, Digital18, which will then transfer them to Star India in exchange for shares, effectively merging the two companies into a unified structure.
Following the asset transfer, Star India will operate as the main company, with Reliance holding a 56% stake. Walt Disney will hold 37% in the combined entity with Uday Shankar and James Murdoch’s Bodhi Tree Systems, currently a minority holder in Viacom18, owning the remaining 7%.
The boards of Star India and Viacom18 are expected to meet soon to finalise an effective date for the merger.
Reliance Foundation chairperson Nita Ambani and Reliance Jio Infocomm chairman Akash Ambani recently joined the Viacom18 board. James Murdoch and Mohammed Ahmed Al-Hardan of Qatar Investment Authority, a key investor in Bodhi Tree, are also on the Viacom18 board that also recently inducted Reliance Industries president for media and content Jyoti Deshpande and Anagram Partners’ Shuva Mandal.
In the post-merger structure, Nita Ambani will assume the role of chairperson of the newly formed entity, while Uday Shankar, a seasoned media executive and a former head of Star India, will serve as its vice-chairperson.
This merger is poised to create a media giant with a robust presence in both TV and digital platforms, and is expected to yield cost and revenue synergies across content, workforce, technology and monetisation for the combined entity.
Media Partners Asia previously projected that the Star-Viacom18 merger would generate $2.8 billion in revenue, with a pro forma Ebitda loss of $200 million for fiscal 2024. The merged entity is expected to feature a profitable entertainment division alongside loss-making sports and streaming sectors.