Viacom18’s Strategic Leap: Acquiring 60% of Disney’s India Operations, According To a Report

In a landmark deal, Viacom18, backed by Reliance Industries, has agreed to purchase a 60% stake in Disney’s India unit. This move, reported by the Wall Street Journal and set to be finalized this month, values Disney’s India unit at $3.9 billion. Viacom18, a collaboration between Mukesh Ambani’s Reliance Industries, Paramount Global, and James Murdoch’s Bodhi Tree Systems, will see Reliance acquiring a 51% share, while Bodhi Tree takes a 9% stake. Disney retains 40% ownership in this arrangement.

The acquisition is a significant shift in the media landscape of South Asia, potentially forming a $10 billion media giant. This move comes on the heels of Disney’s 2019 acquisition of 21st Century Fox’s entertainment assets, including Star India, for $71.3 billion, a critical step in Disney’s global streaming expansion. This included rights to Indian Premier League cricket matches and a strong presence in the Bollywood film industry.

However, the scenario has evolved since then. Viacom18, notably after securing the streaming rights to the IPL cricket matches, has seen a surge in popularity, challenging Disney’s once-dominant position in the Indian streaming market. This deal signifies a major shift in the dynamics of content distribution and consumption in one of the world’s largest entertainment markets.

Further, the merger brings together notable figures like James Murdoch and former Star India CEO Uday Shankar, reuniting them with a business they played significant roles in developing. This strategic acquisition not only changes the game in terms of content and market share but also brings together a formidable team of industry veterans.