Reliance Industries (RIL), under the control of the Ambani family, and Disney are on the verge of finalizing their merger agreement for the Indian media assets, a project in the works for several months. An official announcement is expected later today, the sources added.
Read also | Disney, Reliance sign binding pact to merge media operations in India
However, plans may change before the official announcement. Reliance did not provide comment, and Disney declined to answer questions, the report said.
The Role of Nita Ambani in Focus
The anticipated appointment of Nita Ambani as chairman follows her recent departure from the RIL board, signaling a shift to a focus on philanthropic endeavours. Currently, she holds the position of founder and president at the Reliance Foundation.
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Nita Ambani, along with her family, often interacts with Bollywood celebrities at their organized events. Additionally, she is the founder of the Nita Mukesh Ambani Cultural Center in Mumbai, an outstanding venue for music and theatre.
Strengthening Reliance’s Grip
Reliance and Disney collectively own a streaming service and a total of 120 television channels. The merger is set to strengthen Reliance’s dominance in India’s $28 billion media and entertainment market.
Read also | RIL Tata JV: Mukesh Ambani’s Reliance is considering buying 29% stake in Walt Disney’s Tata Play
Reuters reported earlier that Reliance is expected to secure a 51-54 percent stake in the merged entity, valuing Disney’s Indian operations at $3.5 billion — a significant drop from the estimated $15-$16 billion in 2019.
Bodhi Tree, a joint venture involving James Murdoch and former Disney executive Uday Shankar, is slated to acquire a roughly 9 percent stake in the newly merged entity. Disney is set to retain about 40 percent ownership.
(With inputs from Reuters)
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Published: 28 Feb 2024, 10:05 IST