Network 18 Media and Investments Share price jumped by 9.9 percent to Rs 86.95 and TV18 Broadcast stock touched intraday high of Rs 45.95 as the merger with Disney India is on Reliance's cards for the third quarter. The merger, expected to be completed by the end of Q3 FY25, will create India’s largest media empire, valued at over Rs 70,000 crore. Regulatory approvals are in place, with final clearances expected soon. Network18 shares surged by 9.4%, while TV18 gained 5.6%, reflecting investor optimism about the consolidation of media assets under Reliance and Disney India.

Stock Performance: Shares Surge on Merger News

Following the update from Reliance Industries, shares of Network18 Media & Investments surged by 10.4%, reaching an intraday high of Rs 88.40 on the NSE. Meanwhile, TV18 Broadcast saw a rise of 7%, hitting Rs 45.95 per share. The sharp gains reflect market optimism surrounding the completion of the much-anticipated merger with Disney India. Investors are bullish on the potential synergies and market dominance the merged entity will bring to India’s competitive media landscape.

Strategic Merger to Create India’s Largest Media Empire

The merger between Reliance Industries’ media assets and Disney India is expected to create India’s largest media conglomerate, valued at over Rs 70,000 crore. This move will consolidate operations under Viacom18, a Reliance and Bodhi Tree venture, and align with Star India’s operations. As per a filing by Reliance, the deal is likely to close by the end of Q3 FY25, pending final regulatory approvals. Analysts believe this consolidation will further strengthen Reliance’s dominance in India's entertainment and media sectors.

Regulatory Approvals Progressing Smoothly

The merger has already cleared significant regulatory hurdles. The Competition Commission of India (CCI) has approved the merger of Viacom18 and Star India, while the National Company Law Tribunal (NCLT) sanctioned the merger of Reliance’s media entities, including TV18 Broadcast and E18, with Network18 Media & Investments. This merger became effective on October 3, and the companies are now awaiting final approvals for the transaction to close.

Market Impact and Investor Sentiment

The strategic merger is widely seen as a game-changer for India's media industry, providing Reliance with a dominant position in broadcasting, digital content, and news media. The announcement has fueled positive investor sentiment, driving stock prices higher. Investors are also optimistic about the synergies the merged entity will bring, including cost efficiencies, increased content distribution, and a broader digital footprint across India’s entertainment landscape.

Government Approvals Key to Merger Completion

As part of the ongoing regulatory processes, the Indian government approved the transfer of licenses for Non-News & Current Affairs TV channels from Reliance’s media entities to Star India on September 27. This marks a significant milestone in the merger’s progress. With Viacom18 at the center of Reliance’s media and entertainment businesses, the merged entity will likely emerge as a formidable competitor to other players in India’s entertainment space, including Netflix and Amazon Prime.

Future Prospects and Strategic Growth

The completion of this merger is expected to provide Reliance with greater control over content production, broadcasting, and digital media, positioning the conglomerate to capitalize on the growing demand for streaming services in India. The merger also aligns with Mukesh Ambani’s vision of creating a media powerhouse capable of competing with global entertainment giants. With this merger, Reliance’s media assets are poised for long-term growth, underpinned by a diversified content portfolio and a vast distribution network.