Reliance Industries Limited just acquired a stake in Eros International PLC and announced a joint partnership with Eros India to set-up an INR 1000 crore fund to co-produce and consolidate content. Reliance Industries Limited and Eros international PLC announced that RIL has agreed to commit a 5% equity stake in the NYSE listed Eros at a cost of USD 15 for each share which is an 18% premium over the last closing price.
Reliance Industries and Eros International also announced that they have partnered in India to jointly produce and consolidate content across India. Both the companies would collectively invest up to INR 1000 crores to produce and acquire Indian films and digital content across all languages.
Along with this came the announcement of Ms. Jyoti Deshpande stepping down from her executive role after more than 17 years in Eros as a CEO and MD. This was to accommodate a move on to head the Media and Entertainment business at Reliance Industries Limited as a President of the Chairman’s Office. Ms. Jyoti Deshpande will be starting her role in April 2018 and hand over the position of Group Chairman and CEO of Eros to Mr. Kishore Lulla.
This new change will lead the company’s initiatives in Media and Entertainment to originally build and grow the business around the content ecosystem including Broadcasting, Sports, Films, Music, and Gaming. This is also in lieu to integrate the existing media investments of Reliance Industries Limited such as Viacom and Balaji Telefilms in order to build scale and consolidate the saturated SUB 20 bullion India Mediate and Entertainment industry.
Commenting on the development Mr. Kishore Lulla, the new Group Chairman and CEO of Eros said
“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.