Reliance and Disney Nearing Final Agreement in India, According to Undisclosed Sources
Walt Disney Co. and Reliance Industries Ltd., led by Mukesh Ambani, are in talks to merge their media operations in India in a cash and stock deal. This agreement could be reached as soon as Monday, according to insiders.
Ambani’s company, which operates in various sectors, plans to invest in the venture to secure a majority share of over 51% if the deal goes through. Disney would own the remaining portion. This merger is considered a significant move in India’s media industry.
Reviewing and valuing the businesses will start next week after an initial agreement is signed. This will determine Reliance’s investment amount.
The deal, however, is still being determined. The terms are still being discussed, and either company could withdraw from the agreement.
Reliance bought the streaming rights for the Indian Premier League for $2.7 billion in 2022. Viacom 18 bagged a 5-year contract with BCCI for the digital broadcast of the sports events valued at $720 million. Also, it made a deal in April to broadcast HBO content from Warner Bros Discovery Inc. in India.
For Disney, this merger is a strategic decision in a competitive market where it has seen a decrease in subscriber numbers. The merger would allow Disney to maintain its presence in India.
Bob Iger, Disney’s Chief Executive Officer, remarked in a November 8 earnings call with analysts, “We have an opportunity to strengthen our hand.” He added, “We are exploring our options in India to enhance our position and improve our bottom line.”
In addition to the Disney-Reliance deal, another major merger is set to happen in the Indian media sector between Zee-Sony. This merger is valued at $10 billion. However, the final date for this merger has yet to be determined.
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