Merger of companies often result in role duplication, leading to forced exit of workers. Anticipating this, many employees of Disney Star and Viacom18 are believed to be concerned about the merger's potential impact on their jobs and are planning early departures. To retain its employees, Disney Star recently informed 5% of its workforce that a retention bonus will be given to them if they continue with the organization until the merger is officially completed. As per an estimate, the broadcaster has close to 5000 employees in India.

The mega merger is expected to occur early next year. Estimates suggest that the merged company will control 40% of TV advertising and 42% of the total TV market share (as of FY23). Additionally, the new company is predicted to command a digital OTT market share of approximately 34% in 2023.

According to highly placed sources, the announcement about the retention bonus was made last week across all departments jointly by the HR head and department heads. Appraisal letters are likely to be distributed over the coming month. "The retention bonus, however, is believed to vary based on the profile and seniority of the employee," shared a source. Besides retention bonus, many key employees are also being offered pending promotions this year.

"There is an undercurrent in the organization. People are worried about their jobs and are actively seeking reassurance. This move aims to assure them that their jobs are secure and that the merger will be executed in a well-planned manner without significantly affecting livelihoods," said a senior industry source.

When contacted, Disney Star declined to comment on the matter.

After a series of senior-level exits in 2022 and 2023, the broadcaster made headlines again in January this year when at least 15 employees resigned ahead of the Indian Premier League, with industry sources indicating that the attrition involved senior executives as well.

Among those who have left are Vikas Sachdeva, Senior Manager for outbound sales in India, who moved on after a decade-long association. Additionally, Soumyadutt Nag, senior director of customer strategy (revenue team), and Pratik Khot, Digital Operations, have exited the company.

Industry experts believe that the announcement of the retention bonus is a much-needed step by the company's leadership and may help in retaining talent. "The company has been in the news consistently for high attrition in recent years. There has been uncertainty since the merger was announced, and a retention bonus is definitely a factor in retaining some, if not all, employees," said a senior industry veteran.

On February 28, Reliance Industries Limited, Viacom 18 Media Private Limited, and The Walt Disney Company announced the signing of binding definitive agreements to form a joint venture (JV) that will combine the businesses of Viacom18 and Star India.

As part of the transaction, the media operations of Viacom18 will be merged into Star India Private Limited ("SIPL") through a court-approved scheme of arrangement. Additionally, RIL has agreed to invest ?11,500 crore (US$ 1.4 billion) into the JV for its growth strategy.

The transaction values the JV at ?70,352 crore (US$ 8.5 billion) on a post-money basis, excluding synergies. Upon completion of the above steps, the JV will be controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18, and 36.84% by Disney. Disney may also contribute certain additional media assets to the JV, subject to regulatory and third-party approvals.