Reliance and Disney Ink Binding Merger Pact, RIL to Hold 61% in Merged Entity
- ByStartupStory | February 26, 2024
Reliance Industries Limited (RIL) and Walt Disney Co have officially signed a binding agreement to merge their media operations in India. According to sources familiar with the matter, the media unit of Reliance and its affiliates are set to possess a significant 61% stake in the merged entity, while Disney will retain the remaining share.
The distribution of stakes between the two conglomerates might undergo adjustments, contingent on how Disney’s other local assets are considered when finalizing the deal. An official announcement of this strategic merger is anticipated early this week.
Earlier this month, The Wall Street Journal reported Disney’s decision to sell 60% of its Indian business to Viacom18, marking a substantial development in the Indian media and entertainment industry, particularly following the collapse of the Zee-Sony deal last month. The agreed valuation for this transaction stands at $3.9 billion (Rs 33,000 crore), with Viacom18 being under the ownership of Reliance Industries Limited (RIL) Chairman Mukesh Ambani.
In October of the previous year, Reliance had been evaluating Disney’s India assets, including the popular Disney+ Hotstar streaming service and Star India, at a valuation ranging from $7 billion to $8 billion. During the same period, Disney appraised these operations at $10 billion.
Recent reports also highlighted the competitive landscape, as Disney Star and Viacom18 geared up for a battle over advertising rights in the upcoming Indian Premier League (IPL) 2024. According to The Economic Times, Disney Star, set to broadcast IPL matches on its sports channels, proposed Rs 167 crore and 83 crore for co-presenting and associate sponsorships, respectively, on standard definition (SD) channels.
Follow Startup Story
Related Posts
