RIL–DISNEY”- The Major Merger in Streaming Industry

Dr.G. VINCENT

Introduction

The big news for the Indian Streaming Industry is the biggest merger between Reliance Industry(RIL) and Disney. As per the Bloomberg Report, this merger will become a significant milestone in the entertainment field.

Reasons Behind the Merger:

Global market is hugely impacted by technological disruption. Making and maintaining operating profit is a tougher task for the company. Further it is because of too many players in market. And for instance, annual operating profit of the company has been falling year after year. There was a decline of operating profit ie.21.93% decline compared to the previous year 2022.A huge 254.82% decline in operating profit from 2020.

Similarly, Viacom18, the joint venture between Network18 Group and Viacom, has posted a third straight quarterly loss as operating expenses have surged 47 per cent mainly on account of launch of new channels. Solution for the company is the merger of course.

New Share Holdings:

Ø  After this JV, RIL will be the controlling company

Ø  Disney will be the controlled company.

Ø  63.2% of shareholding will be held by Reliance Industries Limited(RIL).

Ø  36.8% of shares will be held by Disney




 

Source: The Business line , March 1, 2024

 New Management:

Mrs. Nita Ambani will the Chairman

Mr. Udhay Shankar will hold office as a Vice Chair

Positive Impact expected

The joint venture between this big merger is expected to bring the following benefits:

Ø  This will penetrate 750 crores views globally

Ø  Expected generation of Revenue to the tune of Rs. 25,000 crores (Source: The Business line , March 1, 2024)

Conclusion:

When many player operating in a particular business line, it is wise to go for consolidation , in order to avoid cut throat completion. This merger will save and benefit both company and yield good result. The core purpose of Merger and Acquisition will be attained.

 

 

 

 

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