Disney nears deal with Reliance for India media merger: Report
Business
The Mouse House would take a minority stake in the new entity
(Web Desk) - The Walt Disney Co. is expected to sign a non-binding agreement with Reliance Industries — the sprawling conglomerate led by Asia's richest man, Mukesh Ambani — to merge their media operations in India through a cash-and-stock deal, according to Bloomberg.
A transaction could close as early as Monday, according to Bloomberg. Reliance is expected to take a 51% stake in the combined entity, while Disney will own the remainder, Bloomberg reported, citing people familiar with the matter.
The two companies plan to appraise the value and potential liabilities of the merger after the exclusivity pact is signed, which will determine how much Reliance will invest in the company, people familiar with the situation told Bloomberg.
No final decision has been made on the agreement or its terms, and either company can put an end to the talks, according to the news outlet.
The potential deal is indicative of Ambani's ambitions in India. Reliance already owns Network18 Media & Investments and claims that one in every two Indians watches the conglomerate's channels.
Ambani's Viacom18 also signed a multi-year pact with Warner Bros Discovery earlier this year to exclusively stream that company's content in India, replacing a prior agreement that allowed Disney to stream Warner Bros. content on its India streaming service, Deadline said.
Disney acquired media company Star India in 2019 — since rebranded Disney Star — as part of its purchase of 21st Century Fox for $71 billion.
That allowed it to provide popular Indian Premier League cricket matches and dozens of TV channels to viewers. The company also acquired Star India's Hotstar — now Disney+ Hotstar — mobile-first streaming service in that deal.
Viacom18 later outbid Disney for the right to stream those cricket matches, paying $2.7 billion in June 2022.
