Walt Disney and Reliance Industries have signed a binding agreement to merge their media operations in India, a Bloomberg report cited people familiar with the matter. The report said Mukesh Ambani-led Reliance Industries is expected to own a 61% stake in the merged entity as Disney reassesses its strategy in India amid intense competition.
Disney and Reliance representatives declined to comment on the reports about the binding merger agreement.
The distribution of shares between the partners could undergo changes based on the inclusion of the additional local assets of Disney at the time of finalizing the agreement, the report said. Reliance Industries is also considering the acquisition of Tata Play Ltd., a streaming service provider in which Disney has a minority stake.
Currently, Tata Sons holds the ownership interest, making up 50.2% of the investments in Tata Play while the rest of the shares are held by Disney and Temasek, an investment company based in Singapore.
Start of media
After the completion of the merger, Disney and Reliance would create a powerful and influential media giant in one of the fastest growing entertainment markets of the globe. According to the reports, Reliance is investing $1.5 billion for its 61% stake.
The merger comes after a critical few years for Disney, as the American entertainment giant’s fortunes turned around after Reliance became its direct competitor in the OTT space. The two giants fought hard for the sports right, but in 2022, Mukesh Ambani’s entity successfully outbid Disney in securing streaming rights for the Indian Premier League (IPL) cricket tournament.
In the same year, Reliance clinched a multi-year deal to broadcast HBO shows from Warner Bros. Discovery Inc., which were previously under Disney’s purview. Under intense competition, Disney was forced to broadcast the ICC World Cup 2023 for free for the users of its mobile app in India.
Disney-Reliance merger is one of the two big-ticket transactions in the Indian media and entertainment space. Last month, the merger plans between Sony and Zee Entertainment Enterprises Ltd (ZEEL) ended on a bitter note due to disagreements over the leadership of the newly merged media powerhouse.
Shares of Reliance Industries closed 0.78% up on Friday at ₹2,986.55 each
Unlock a world of Perks! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
Catch all Corporate news and Updates on Live Mint. Check out all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates and Live Business News.
More or less
Published: 25 Feb 2024, 16:42 IST