The Walt Disney Company has projected an equity loss of approximately $300 million for fiscal year 2025 (FY25) stemming from its joint venture (JV) in India with Reliance Industries Limited (RIL). This anticipated loss is primarily attributed to purchase accounting amortization following the formation of the JV, named JioStar.
🏢 Formation of JioStar Joint Venture
Finalized on November 14, 2024, the JioStar JV amalgamated Disney’s Star-branded general entertainment and sports channels, along with the Disney+ Hotstar streaming service, with RIL’s media assets, including Viacom18. Post-transaction, RIL holds a 56% controlling stake, Disney retains 37%, and the remaining 7% is owned by Bodhi Tree Systems. Inc42 Media
📊 Financial Impact on Disney
In its Q2 FY25 earnings report, Disney disclosed a $103 million equity loss from the JioStar JV for the quarter, contributing to a cumulative $136 million loss over the six months ending March 2025. The company projects the total equity loss to reach approximately $300 million for the full fiscal year.
This restructuring led Disney to deconsolidate Star India’s financials, now reporting its 37% stake under “Equity in the income of investees.” Consequently, Disney’s international operating income for Q2 FY25 plummeted 84% year-over-year, from $92 million to $15 million. The Economic Times
🌐 Strategic Outlook
Despite the projected losses, Disney remains optimistic about the strategic benefits of the JV. The consolidation aims to create a formidable presence in India’s media landscape, combining extensive content libraries and streaming platforms to cater to a vast audience. The combined entity’s reach is expected to surpass that of competitors like Netflix and Prime Video in the region.
