Reliance and Disney Merge, RIL to Own 61% Report

26 Feb, 2024

Reliance and Disney Merge, RIL to Own 61% Report

Reliance Industries Limited (RIL) and Walt Disney Co have entered a binding agreement to merge their media operations in India, Bloomberg reported, citing knowledgeable sources. Under the pact, Reliance's media unit and its affiliates are anticipated to retain a minimum of 61 percent ownership in the combined entity, leaving the remainder to Disney. However, the distribution of stakes between the partners may be subject to alteration depending on how Disney's other local assets are accounted for at the time of finalizing the deal. An official announcement of the merger is expected early this week.

Earlier this month, The Wall Street Journal disclosed that Disney had consented to divest 60 percent of its Indian business to Viacom18. This development marks a significant maneuver in India's media and entertainment sector following the collapse of the Zee-Sony deal the prior month.

Disney agreed to sell its Indian business majority stake to Viacom18 for a valuation of $3.9 billion (Rs 33,000 crore). Viacom18, in turn, is a subsidiary of Reliance Industries Limited (RIL), chaired by Mukesh Ambani. In October of the previous year, Reliance had appraised Disney's India assets—encompassing Disney+ Hotstar and Star India—at a value ranging from $7 billion to $8 billion, contrasting Disney's valuation of $10 billion for these operations.

Recent reports suggest that Disney Star and Viacom18 are preparing for a showdown over advertising rights for the upcoming Indian Premier League (IPL) 2024 season. According to The Economic Times, Disney Star, set to broadcast IPL matches on its sports channels, has proposed rates of Rs 167 crore and 83 crore for co-presenting and associate sponsorships, respectively, on standard definition (SD) channels