Disney Makes Historic Merger Move, Shaping Future Entertainment Landscape

In November 2022, Bob Iger stepped back into the role of CEO of The Walt Disney Company after Bob Chapek was unceremoniously fired. From the beginning, Iger was honest about the changes needed at Disney+. Disney+ launched in 2019, just months before the COVID-19 pandemic, and saw some initial success. However, the streaming service has struggled for several years and Disney has lost nearly $11 billion.

Related: Fans Furious After Disney+ Enacts Controversial Policy Change

Since returning, Iger has made a concerted effort to make Disney+ profitable, or at least, stop the bleeding regarding losses. That has led to the cancelation of nearly a dozen Disney+ original series. This includes National Treasure: Edge of History, The Mysterious Benedict Society, Big Shot, Willow, The Mighty Ducks: Game Changers, and Muppets Mayhem. They also canceled two series that had been filmed but not yet aired — The Spiderwick Chronicles and Nautilus.

Of course, for any streaming service to succeed, they must constantly enroll new subscribers. Iger admitted that the recent price hikes to Disney+ cost the company 1 million subscribers. However, he remained positive, saying that the company expects to add 5 to 6 million more subscribers by the end of March.

And now, Iger has just cemented a historic merger that will help Disney become one of the premiere streaming services in the most populous country in the world.

According to TheWrap, The Walt Disney Company has signed an $8.5 BILLION deal with Reliance Industries. The joint venture will merge the massive media company Viacom18 with Star India (formerly Disney Star).

The combined entity will be a leading TV and digital streaming platform in India, bringing together assets across entertainment and sports, including Colors, StarPlus, StarGOLD, Star Sports and Sports 18. It will also offer access to highly anticipated events through JioCinema and Hotstar, catering to over 750 million viewers across India and the Indian diaspora across the world.

Additionally, the joint venture will have exclusive rights to distribute Disney films and productions in India, with a license to more than 30,000 content assets.

The deal is expected to be finalized and go into effect in late 2024 or early 2025. Reliance Industry will have 63% ownership and Disney will have 37% ownership. Reliance will also invest $1.4 billion into the merger, while Disney will contribute “certain additional media assets.”

Reliance Industries is owned by Mukesh Ambani, who lauded the massive merger.

“We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance group.”

Bob Iger also praised the deal, since Disney will now work with a media company that knows the ins and outs of entertainment in India.

The merger comes after Disney explored the possibility of selling Star India. Disney acquired the streaming service when it purchased 21st Century Fox in 2019.

What do you think of this historic merger? Let us know in the comments!

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