Research by: Siddhant Puri, Sandeep Puri, Darren Meister, Shaphali Gupta, & Rakesh Singh
Abstract
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 and Viacom18 was a media company owned by Reliance Industries Limited. The two companies had been working on an agreement to merge the two media and entertainment businesses since December 2023. A new subsidiary of Viacom18 was planned to integrate Star 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. However, questions about regulatory challenges and potential changes in content and service offerings had to be addressed before the deal to be finalized.
Learning objectives
This case is designed for undergraduate or postgraduate courses on marketing or strategy. It is also suitable for a segment on a company’s strategy following a merger or acquisition. The case can also be used in courses on media and entertainment that cover the topics of over-the-top applications and post-merger marketing strategy. It offers an opportunity to discuss the impact of a merger on content availability and service offerings in the media and entertainment industry. After completion of this case, students will be able to
- 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;
- 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; and
- understand regulatory hurdles for a merger and the required steps to ensure compliance.
To cite this case: Puri, S., Puri, S., Meister, D., Gupta, S., & Singh, R. (2024). Reliance and Disney: Reshaping the media and entertainment business in India. Ivey ID: W38350. London, Canada: Ivey Publishing.
To access this case: https://www.iveypublishing.ca/s/product/reliance-and-disney-reshaping-the-media-and-entertainment-business-in-india/01tOF000004r6BRYAY
