Walt Disney Co. announced Wednesday an agreement with India’s Reliance Industries Ltd. and Viacom 18 Media Private Ltd. to form a digital-streaming and TV joint venture that will have exclusive rights to distribute Disney movies in India.
The joint venture will combine the businesses of Disney’s
DIS,
Star India and Viacom 18, which is partially owned by Paramount Global
PARA,
Reliance Industries
500325,
agreed to invest the equivalent of about $1.4 billion into the joint venture.
“India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company,” Disney Chief Executive Bob Iger said.
The joint venture will be valued at about $8.5 billion. It will be controlled by Reliance, which will own a 16.34% stake, while Disney will own a 36.84% stake and Viacom 18 will own a 46.82% stake.
Disney said it will grant the joint venture exclusive rights to distribute Disney films and productions in India and may also contribute certain additional media assets.
“This is a landmark agreement that heralds a new era in the Indian entertainment industry,” said Mukesh Ambani, the chair of Reliance. “We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess and market insights to deliver unparalleled content at affordable prices to audiences across the nation.”
Disney’s stock rose 1% in morning U.S. trading and Reliance Industries shares closed down 2.1% in India trading.
Meanwhile, shares of Paramount were losing 2%, after a report that merger talks between the company and Warner Bros. Discovery Inc.
WBD,
have stopped, and ahead of Paramount’s fourth-quarter results, due out after the closing bell.
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