Reliance and Disney Ink mega media company merger deal: Report
Mumbai, December 25: Reliance Industries and Walt Disney are in talks to merge their media operations in India, according to the Economic Times. The proposed merger would give Reliance a 51 per cent stake through shares and cash, leaving Disney with 49 per cent. This move aims to create a significant entertainment conglomerate, elevating Reliance's influence over the new entity.
Expected to conclude by February, pending regulatory approvals, Reliance aims to wrap up the process by January's end. This merger could birth one of India's largest entertainment empires, rivalling TV giants such as Zee Entertainment and Sony, and streaming services like Netflix and Amazon Prime. Reliance's competitive edge against Disney includes offering free streaming of popular Indian Premier League (IPL) cricket matches, previously driving up Disney's Hotstar app subscriptions.
Currently, Reliance manages various TV channels and the JioCinema streaming app through Viacom18. The proposed merger might transfer control of Star India to a unit within Reliance's Viacom18 via a stock swap.
The entities are planning substantial investments, ranging from $1 billion to $1.5 billion in the business. The board structure may entail an equal representation of directors from Reliance and Disney, with potential inclusion of at least two independent directors, as per reports.
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