Reliance-Disney Deal: Walt Disney and Reliance Industries Sign Non-Binding Agreement to Merge Indian Media Operations, Says Report
Walt Disney and Reliance Industries have signed a non-binding term sheet for merging their media businesses in India on Monday, December 25, a report said.
Mumbai, December 25: Walt Disney and Reliance Industries have signed a non-binding term sheet for merging their media businesses in India on Monday, December 25. The merger agreement will give Reliance Industries a 51 per cent stake in the combined entity through a mix of cash and shares, while Disney will own the remaining 49 per cent.
The report published by the Economic Times said the deal is expected to be finalised by February 2024, but Reliance aims to complete it by January 2024. The 51:49 stock-and-cash merger favouring the Mukesh Ambani-led group would give it more power. Two weeks ago, Reuters reported that executives from both companies were meeting in London to discuss the next steps of the media merger. 'AI To Everyone, Everywhere': Mukesh Ambani Outlines Mega AI Push at Reliance AGM 2023, Calls Artificial Intelligence Most Exciting Frontier of Growth for Jio.
The merger would create one of the largest entertainment conglomerates in India, competing with TV players like Zee Entertainment and Sony and streaming platforms like Netflix and Amazon Prime. Reliance operates several TV channels and the JioCinema streaming app through its media and entertainment arm, Viacom18. Ambani has been in tough competition with Disney, offering free streaming of the Indian Premier League cricket tournament, previously held by Disney in India.
This has led to a drop in users from Disney’s streaming app Hotstar in the past few months. Since the beginning of this year, Disney has been exploring a sale or a joint venture (JV) deal for its India business, which includes many TV channels. The ET said that the proposed deal would create a subsidiary under Reliance’s Viacom18, which would acquire Star India through a stock swap. The report also said that the parties are planning to invest USD 1 billion to USD 1.5 billion in the business but did not clarify whether this was the total or the individual amount. Hurun India Rich List 2023: Billionaire Mukesh Ambani Reclaims Top Spot, Surpasses Adani Group Chairman Gautam Adani; Check Details Here.
The report added that the board of the merged entity would have an equal representation from Reliance and Disney, with at least two directors each. The report also mentioned that they are considering having at least two independent directors, but this may change in the upcoming weeks.
(The above story first appeared on LatestLY on Dec 25, 2023 09:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).