RIL and Eros India will partner to jointly produce and consolidate content from across India and will go for a joint investment of ₹1,000 crore to produce and acquire Indian films and digital originals across all languages.
In an attempt to strengthen its content strategy, Mukesh Ambani’s Reliance Industries is acquiring 5% stake in NYSE-listed Eros International, holding company of Indian Cinema Eros International Media (Eros India).
In a statement issued by the company, an overseas subsidiary of RIL will acquire Eros’ shares for $15 apiece, at an 18% premium to the last closing price. The transaction is subject to customary regulatory and other approvals.
Besides, RIL and Eros India will partner to jointly produce and consolidate content from across India. The parties will go for a joint investment of ₹1,000 crore to produce and acquire Indian films and digital originals across all languages.
In a successive decision taken by the company, Jyoti Deshpande, group CEO, Eros will be taken down form her post after more than 17 years at the content company and moved on to head the media and entertainment business at RIL as president of the chairman’s Office. Deshpande will start her stint at RIL from April 2018, but will continue to remain as a non-executive director on the board of Eros. Kishore Lulla will continue his position as the group chairman and CEO of Eros.
Mukesh Ambani, CMD, RIL commented, “We are pleased to join hands with Eros, as it will bring further synergies into our plans, making for a win-win partnership. We are delighted to welcome Jyoti Deshpande into the Reliance family and believe that she will not only give wings to our plans but also play a pivotal role in transforming the sector.”
Kishore Lulla, executive chairman, Eros said the move is a significant step for Eros too given Reliance Jio’s reach. “I am very pleased that Eros is partnering with RIL in its entertainment journey with several synergies across technology, content and digital with Eros Now. We look forward to collaborating and growing as we continue to make new strides on the digital and content forefronts. I am confident that together, we can make a meaningful difference.”