Here’s how India’s media companies merged and acquired their way through 2024

Transformative mergers and acquisitions swept Indian media in 2024. The year saw intense consolidation and strategic realignments. The Sony-Zee merger failed. ENIL bought Gaana. Saregama later invested in Pocket Aces to strengthen its digital content leadership. Amazon's acquisition of MX Player and miniTV started Indian OTT consolidation. Another notable development was Serene Productions' Dharma Productions investment.

The year culminated with the landmark merger of Viacom18 and Disney Star, creating JioStar, India’s largest media conglomerate. We review these major Indian media events as the year ends.

Sony-Zee merger called off

Sony Group terminated its merger agreement with Zee Entertainment Enterprises after two years of negotiations. Sony's Indian unit, Culver Max Entertainment (CME), announced the decision on January 22 after disagreements over the merged entity's leadership, particularly Zee CEO Punit Goenka, who was under investigation by India's capital markets regulator.

The merger, first agreed upon in December 2021, was poised to create a $10 billion media powerhouse, making it India’s fourth-largest media entity after Google, Meta, and Disney-Star.

The failed merger cost Zee Entertainment Rs 432 crore in FY23 and FY24, as per media reports. Also, Zee's portfolio rationalisation cost Rs 331 crore in FY23 as impairment charges for closing Margo Networks.

Further, Culver Max approached the Singapore International Arbitration Centre seeking $90 million in termination fees from the company, while Star India sued Zee for ICC TV rights in London.

ENIL acquires Gaana

Music streaming platform Gaana, backed by Times Internet and Tencent, merged with Radio Mirchi operator Entertainment Network India Limited (ENIL), a Times Group subsidiary, in December 2023. Entrackr revealed the news in August.

After failed acquisition talks with Airtel Wynk, the Rs 25 lakh (around $30,000) deal reduced third-party buyout prospects. Gaana struggled in the competitive music streaming market despite raising over $200 million and reaching a peak valuation of $580 million. ENIL's NSE filings revealed the acquisition, but Tencent's stake is unclear.

Times Internet has repeatedly supported Gaana with debt funding, including a Rs 100 crore debt-to-equity conversion. The company also pledged an additional Rs 10 crore in debt funding for Gaana. Meanwhile, ENIL’s CEO Yatish Mehershi stated that ENIL invested Rs 15 crore in the first quarter of FY25.

One of India's first music streaming platforms, Gaana, launched in 2010, offered a large library of Indian and international music. At its peak, it had over 200 million monthly users and became a national digital music brand.

Saregama acquires Pocket Aces

Saregama acquired a 51.8% stake in digital entertainment company Pocket Aces Pictures for Rs 174 crore in an all-cash deal in September. Saregama has the option to buy a 41% stake within 15 months at pre-agreed multiples.

Pocket Aces, a youth-focused content creator, has over 3,000 Instagram and YouTube assets. FilterCopy, Nutshell, and Gobble publish over 30 pieces of content daily to over 95 million followers. Clout, a talent management arm for over 100 digital influencers, and Dice Media, which produces hit web series on Netflix, Hotstar, and Amazon, are also run by the company.

Pocket Aces' addition will help Saregama target the 18-35 audience with FY23 revenue of Rs 104 crore and a 34% CAGR over four years. Saregama wants to use Pocket Aces' digital reach to promote its music library and collaborate on artist management and videos.

Amazon-MX Player merger

Amazon MX Player, one of India's largest free OTT services with over 250 million users, was launched in October after Amazon acquired the free ad-supported streaming service MX Player and merged it with miniTV. Reports say Amazon bought Times Internet-owned MX Player assets for over $100 million in cash. Karan Bedi, MX Player CEO, leads Amazon MX Player.

This merger consolidates India's competitive streaming market, expanding Amazon's regional and mass audiences. The combined service offers hit Indian shows like Aashram, Dharavi Bank, and Campus Diaries as well as regionally dubbed Korean, Mandarin, and Turkish content. Amazon wants to expand its ad-supported video-on-demand (AVoD) in India.

Times Internet bought MX Player for Rs 1,000 crore in 2019 and turned it into an OTT platform. Several assets were sold after MX Player struggled to generate cash flow despite Rs 775 crore from Tencent and Times Internet. Meanwhile, Amazon miniTV was launched in 2021 to target small-town audiences. 

Dharma Productions’ acquisition

The same month, Adar Poonawalla-led Serene Productions invested Rs 1,000 crore in Karan Johar's Dharma Productions and Dharmatic Entertainment, acquiring 50% of the company while Johar retained the rest. The partnership seeks to use cutting-edge technology and production methods to change content creation, distribution, and audience engagement.

Karan Johar, executive chairman, leads creativity, while Apoorva Mehta, CEO, manages strategy and operations. This partnership combines Dharma's storytelling legacy with Poonawalla's strategic expertise to meet digital-savvy audiences' needs and expand Dharma's global footprint.

Dharma Productions had been in talks to invest with large conglomerates and industrialists, including Saregama.

Reliance-Disney mega merger

In November, Indian media witnessed a landmark merger. JioStar, India's largest media conglomerate, was formed on November 14 when Reliance Industries' Viacom18 Media and The Walt Disney Company's Indian division merged for Rs 70,350 crore. Additionally, Reliance invested Rs 11,500 crore for growth.

The Joint Venture (JV) is owned by RIL (16.34%), Viacom18 (46.82%), and Disney (36.84%). The company's chair is Nita Ambani, vice-chairman is Uday Shankar, and co-CEOs Kevin Vaz, Kiran Mani, and Sanjog Gupta run broadcast, digital, and sports operations.

This JV included JioCinema, Disney+ Hotstar, and 120 TV channels. The JV will offer over 50 million subscriptions and more than 30,000 hours of annual entertainment and sports content, including IPL, ICC, and EPL.

Several top-level exits have occurred, including K Madhavan (Disney Star President), Sajith Sivanandan (Disney+ Hotstar), and Ferzad Palia (JioCinema). The JV consolidates key sports rights, including IPL, ICC tournaments, and bilateral cricket matches, as well as properties like Wimbledon, the Pro Kabaddi League, MotoGP, and the EPL.

The Competition Commission of India approved the deal with conditions on August 27, 2024, including refraining from bundling TV and OTT ad slots for cricket. Seven channels, including Hungama and Super Hungama, will be divested to address competition concerns.

With all major approvals secured, including from the NCLT and the MIB, JioStar marks a seismic shift in India’s media landscape.