Reliance-Disney joint venture in India gets EU approval

Star India Private Limited (SIPL), the joint venture of Reliance Industries Limited and Walt Disney, has received approval in the European Union, marking its first overseas recognition after the approvals accorded by Indian regulators, including the Competition Commission of India and the National Company Law Tribunal.

SIPL combines the assets and operations of Viacom18, StarPlus, and JioCinema, alongside other entertainment businesses from both companies, to create a new entertainment heavyweight in India.

The European Commission, the executive arm of the Europen Union, however, felt the combination "would not raise competition concerns" especially since it operation in the European Economic Zone is minimal.

SIPL will have combined assets valued at Rs70,000 crore, with RIL and its subsidiaries holding 63.16 per cent stake and Disney holding the remaining 36.84 per cent.

RIL has also committed fresh investment of Rs11,500 crore in the venture, specifically for expansion of the over-the-top (OTT) streaming services.

SIPL has Nita Ambani, wife of RIL chairman Mukesh Ambani, as its chairperson and Uday Shankar, former Disney executive as vice chairperson.

SIPL brings together entertainment and sports channels, including Colours, StarPlus, Star Sports, and Sports 18, besides JioCinema and Hotstar and will have over 750 million viewers across India.