Idrees Abbas | Lightrocket | Getty Images
Entertainment titan Walt Disney and Indian conglomerate Reliance will merge their Indian businesses, the U.S. entertainment giant announced Wednesday.
The companies will be combining their respective Star India and Viacom18 units into the newly-created Star India joint venture, valued at roughly $ 8.5 billion on a post-money basis, excluding synergies.
Following the completion of the transaction, Reliance, led by Asia’s richest man Mukesh Ambani, will control the JV and inject $1.4 billion into its growth strategy. The ownership structure will comprise of a 16.38% interest for Reliance, 46.82% for Ambani’s Viacom18 and 36.84% for Disney.
Ambani’s wife, Nita Ambani will chair the joint venture, while Viacom18 board member Uday Shankar will serve as vice chairperson.
Disclosure: Entities tied to Reliance Industries Chairman Mukesh Ambani have a stake in the parent company of CNBC TV-18, CNBC’s local India partner.
This is a breaking news story, please check back later for more.
Read the full article here
