Walt Disney Co. and Reliance Industries Ltd have reportedly entered into an agreement to create a merger of media operations in India, media outlets said citing sources familiar with the issue. The companies signed a binding pact to merge their media companies in the country as the former US firm looks into entering India.
Billionaire Mukesh Ambani-owned Reliance is looking to control about 61 per cent stake in the merged entity via its affiliates, reported Bloomberg. The remaining control of the new entity would stay with Disney, the report said citing the sources, who wished to remain anonymous.
The details of the deal are expected to be announced early in the week, the sources said. The report mentioned that a representative from Disney refused to comment, while a Reliance spokesperson didn’t provide any response to a query on the merger.
Sources further stated that the ownership pattern between the two companies might change, depending on how the other local assets of Disney are taken into consideration by the time the deal is finalised.
Notably, Disney controls a minority stake in Tata Play Ltd, which if local news reports are to believed, is being considered for acquisition by Reliance.
The US entertainment company has been facing obstacles in India like retaining subscribers and keeping a hold on covering media assets, whereas Reliance has managed to acquire a decent size of the domestic media businesses in the past few years.
In 2022, Reliance also beat Disney in securing the streaming rights for the cricket tournament, Indian Premier League (IPL), and also won a multi-year pact in April to broadcast the HBO shows in India.
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Notably, Sony Group also tried to create a media merger with Zee Entertainment Enterprises Ltd, which fell apart after the former pulled out over differences on deciding the head for the new entity.