RELIANCE AND DISNEY: RESHAPING THE MEDIA AND
ENTERTAINMENT BUSINESS IN INDIA CASE STUDY
SOLUTION
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SYNOPSIS
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In May 2024, the National Company Law Tribunal of India approved the merger of Star India Private Limited
(Star India) and Viacom18 Media Private Limited (Viacom18). Star India was a broadcasting service owned by
The Walt Disney Company (Disney) and Viacom18 was a media company owned by Reliance Industries
Limited (Reliance).2 Reliance and Disney had been working on an agreement to merge the two media and
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entertainment businesses since December 2023. A new subsidiary of Viacom18 was planned to integrate Star
tio
India with an immediate capital investment of US$1–1.5 billion. Facing financial challenges, Viacom18 and Star
India saw this merger as a strategic solution to enhance competitiveness and address profit declines.
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The merger was expected to create a leading entertainment entity with an extensive number of television (TV)
channels, a major over-the-top (OTT)3 video streaming application, and a significant amount of content offering
So
to potentially reshape India’s media landscape. However, the merger was raising questions about potential
changes in content and service offerings, especially in the streaming and TV programming sectors. In addition,
regulatory challenges were likely to require careful compliance measures, for the deal to secure final approval.
OBJECTIVES
• Understand the impact of a merger on the competitive media and entertainment industry.
• Analyze the strategic goals of a merger between a local and an international company and examine how
these goals align with each company’s objectives.
The Case Solution Starts From page 5
,• Understand the impact of cost and revenue synergies after a merger.
• Analyze the impact of a merger on content availability and service offerings in the media and
entertainment industry.
• Understand regulatory hurdles for a merger and the required steps to ensure compliance.
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ASSIGNMENT QUESTIONS
1. How will the merger between Viacom18 and Star India impact the competitive landscape of the Indian
media and entertainment industry?
2. What are this merger’s long-term strategic goals for Reliance and Disney in the Indian market, and how
do they align with each company’s global objectives?
3. How is the merger expected to address the financial challenges that Viacom18 and Star India are facing,
and what are the projected cost and revenue synergies?
4. What changes can consumers expect regarding content availability and service offerings due to this
merger, especially about streaming services and TV programming?
5. What major regulatory hurdles will the merger face, and what steps are being taken to ensure
compliance and approval from relevant authorities?
The Case Solution Starts From page 5
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ANALYSIS
1. How will the merger between Viacom18 and Star India impact the competitive landscape of the
Indian media and entertainment industry?
The merger between Viacom18 (owned by Reliance) and Star India (owned by Disney) could have a
significant impact on the competitive landscape of India’s media and entertainment industry. It could also
and shape the industry’s future direction. Student responses should include the details noted below, in
addition to other options.
Market Leadership and Scale
The combined entity of Reliance’s Viacom18 and Disney’s Star India is expected to become one of the
largest Indian media and entertainment companies. The scale could give the merged entity a significant
advantage for market presence, negotiating power with advertisers, and content acquisition capabilities.
The Case Solution Starts From page 5
, 5. What major regulatory hurdles will the merger face, and what steps are being taken to ensure
compliance and approval from relevant authorities?
The merger may encounter various regulatory hurdles that must be overcome before the new plan becomes
a reality. Student responses should include the regulatory considerations and compliance steps detailed
below, in addition to other options.
Competition Law Compliance
e
The most significant regulatory hurdle is likely to involve compliance with the country’s competition laws.
pl
The Competition Commission of India scrutinizes all merger proposals to ensure that they will not create
monopolistic entities that could harm competition in the market. The merged entity’s market dominance in
m
various sectors, such as broadcasting and OTT platforms, will be a primary focus.
Sa
Foreign Investment Rules
Since Disney is a foreign entity, the merger must comply with India’s foreign direct investment regulations,
n
tio
lu
So
The Case Solution Starts From page 5
ENTERTAINMENT BUSINESS IN INDIA CASE STUDY
SOLUTION
e
pl
SYNOPSIS
m
Sa
In May 2024, the National Company Law Tribunal of India approved the merger of Star India Private Limited
(Star India) and Viacom18 Media Private Limited (Viacom18). Star India was a broadcasting service owned by
The Walt Disney Company (Disney) and Viacom18 was a media company owned by Reliance Industries
Limited (Reliance).2 Reliance and Disney had been working on an agreement to merge the two media and
n
entertainment businesses since December 2023. A new subsidiary of Viacom18 was planned to integrate Star
tio
India with an immediate capital investment of US$1–1.5 billion. Facing financial challenges, Viacom18 and Star
India saw this merger as a strategic solution to enhance competitiveness and address profit declines.
lu
The merger was expected to create a leading entertainment entity with an extensive number of television (TV)
channels, a major over-the-top (OTT)3 video streaming application, and a significant amount of content offering
So
to potentially reshape India’s media landscape. However, the merger was raising questions about potential
changes in content and service offerings, especially in the streaming and TV programming sectors. In addition,
regulatory challenges were likely to require careful compliance measures, for the deal to secure final approval.
OBJECTIVES
• Understand the impact of a merger on the competitive media and entertainment industry.
• Analyze the strategic goals of a merger between a local and an international company and examine how
these goals align with each company’s objectives.
The Case Solution Starts From page 5
,• Understand the impact of cost and revenue synergies after a merger.
• Analyze the impact of a merger on content availability and service offerings in the media and
entertainment industry.
• Understand regulatory hurdles for a merger and the required steps to ensure compliance.
e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. How will the merger between Viacom18 and Star India impact the competitive landscape of the Indian
media and entertainment industry?
2. What are this merger’s long-term strategic goals for Reliance and Disney in the Indian market, and how
do they align with each company’s global objectives?
3. How is the merger expected to address the financial challenges that Viacom18 and Star India are facing,
and what are the projected cost and revenue synergies?
4. What changes can consumers expect regarding content availability and service offerings due to this
merger, especially about streaming services and TV programming?
5. What major regulatory hurdles will the merger face, and what steps are being taken to ensure
compliance and approval from relevant authorities?
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
So
ANALYSIS
1. How will the merger between Viacom18 and Star India impact the competitive landscape of the
Indian media and entertainment industry?
The merger between Viacom18 (owned by Reliance) and Star India (owned by Disney) could have a
significant impact on the competitive landscape of India’s media and entertainment industry. It could also
and shape the industry’s future direction. Student responses should include the details noted below, in
addition to other options.
Market Leadership and Scale
The combined entity of Reliance’s Viacom18 and Disney’s Star India is expected to become one of the
largest Indian media and entertainment companies. The scale could give the merged entity a significant
advantage for market presence, negotiating power with advertisers, and content acquisition capabilities.
The Case Solution Starts From page 5
, 5. What major regulatory hurdles will the merger face, and what steps are being taken to ensure
compliance and approval from relevant authorities?
The merger may encounter various regulatory hurdles that must be overcome before the new plan becomes
a reality. Student responses should include the regulatory considerations and compliance steps detailed
below, in addition to other options.
Competition Law Compliance
e
The most significant regulatory hurdle is likely to involve compliance with the country’s competition laws.
pl
The Competition Commission of India scrutinizes all merger proposals to ensure that they will not create
monopolistic entities that could harm competition in the market. The merged entity’s market dominance in
m
various sectors, such as broadcasting and OTT platforms, will be a primary focus.
Sa
Foreign Investment Rules
Since Disney is a foreign entity, the merger must comply with India’s foreign direct investment regulations,
n
tio
lu
So
The Case Solution Starts From page 5
