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News: Star India will merge with Reliance Industries (RIL) subsidiary Viacom18 with combined entity valued at about $8.5 billion. The merger will create a media giant with a combined FY23 topline of ₹25,000 crore. The joint venture will also dominate sports with all the key cricket media rights in its possession. It will have over 750 million viewers. RIL will inject ₹11,500 crore ($1.4 billion) cash into the JV for its growth strategy. On a post-money basis, the Star-Viacom18 venture will be valued at ₹70,352 crore ($8.5 billion).
Views: RIL, Viacom18, and Disney will own 16.34%, 46.82%, and 36.84% of the venture, respectively. Viacom18's stake is valued at approximately $4 billion, while that of Star is $3.1 billion. We believe with media reported Ad market share of ~40% , the combined entity will by far lead the TV and OTT space, going ahead both in the GEC and Sports genre.
Impact: Positive