The National Company Law Tribunal (NCLT) gave its approval on Friday for the merger scheme between Reliance Industries-owned Viacom 18 Media and Star India, a unit of The Walt Disney Company. This merger will bring together two major players in the media and entertainment industry, creating a powerhouse worth over Rs 70,000 crore.
The approval from the NCLT comes just two days after the Competition Commission of India also greenlit the merger, paving the way for the formation of India’s largest media empire. With the NCLT’s stamp of approval, the stage is set for the consolidation of media assets under one roof.
In its order, the NCLT noted that the scheme of arrangement among Viacom 18, Digital18, and Star India appears fair, reasonable, and compliant with the law. The tribunal emphasized the need for compliance with the Competition Commission of India’s approval for the scheme to take effect.
The proposed scheme involves the transfer and vesting of media operations from Viacom 18 and JioCinema into Digital 18, followed by the demerger, transfer, and vesting of V18 Undertaking from Digital 18 into Star India. With all statutory requirements met, the NCLT declared the Company Scheme Petition as absolute.
Mukesh Ambani, Chairman of Reliance Industries, hailed the merger as the dawn of a new era in India’s entertainment industry. He welcomed The Walt Disney Company to the Reliance family, envisioning the expanded media business as a significant growth driver within the Reliance ecosystem.
The deal, announced six months ago, endured scrutiny from the anti-trust regulator and the NCLT before receiving the go-ahead. The Competition Commission of India approved the combination involving key players from both the RIL and Disney camps.
Under the terms of the agreement, RIL and its affiliates will hold a majority stake in the combined entity, while Walt Disney will have a significant minority share. The joint venture will encompass two streaming services and a vast array of television channels, solidifying its position as India’s premier media house.
As part of the deal, Reliance Industries has committed to injecting substantial funds into the joint venture to enhance its competitive edge against rival players. Nita Ambani, wife of RIL Chairman Mukesh Ambani, will lead the joint venture, with Uday Shankar serving as Vice Chairperson.
In conclusion, the NCLT’s approval of the merger between Viacom 18 and Star India marks a significant milestone in the Indian media and entertainment landscape. The consolidation of assets and expertise from these leading companies is poised to reshape the industry and elevate the content offerings for consumers. With the backing of major players like Reliance Industries and The Walt Disney Company, the merged entity is primed to lead the way in delivering compelling entertainment experiences to audiences across India and beyond.
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