Disney Anticipates Star India Merger with Reliance Industries by mid-2025

by  EVENTFAQS Bureau Industry Watch | May 9, 2024 | News

Walt Disney Star India Reliance Industries

In a regulatory filing, the Walt Disney Company stated that it anticipates finalizing the merger of Star India with Reliance Industries during the first half of 2025, pending customary closing conditions such as regulatory approvals and government consents. Should the closure not be achieved by February 28, 2026, either Star India or RIL retains the option to terminate the transaction.

Star India, on February 28, 2024, entered into a binding definitive agreement with Reliance Industries and Viacom 18, primarily owned and controlled by RIL, to establish a joint venture. This venture aims to amalgamate the operations of Viacom 18 and Star India, encompassing entertainment and sports pay TV, free-to-air networks, DTC services, library content, and certain production businesses (Star India Transaction).

As per regulatory disclosure, RIL will hold a controlling interest of 56% in the joint venture, with 37% owned by the Walt Disney Company, and the remaining 7% by Bodhi Tree Systems, an external investment entity.

The Walt Disney Company acknowledged that the carrying value of Star India surpassed its fair value, resulting in a non-cash goodwill impairment charge of $1.3 billion, recorded in restructuring and impairment charges within the condensed consolidated statements of operations. This impairment assessment encompassed non-cash cumulative foreign currency translation losses amounting to approximately $0.8 billion.