Disney to finalise merger with Reliance next week, says report

Reliance Industries and Walt Disney Co are anticipated to formalise an agreement, possibly as early as Monday, for the merger of their media operations in India through a cash-and-stock deal, according to a Bloomberg News report on Tuesday.

JioCinema, under the purview of Reliance's broadcast venture Viacom18, led by billionaire Mukesh Ambani, has intensified competition for Disney India and other streaming platforms.

Ambani strategically promoted the platform by providing complimentary access to the Indian Premier League cricket tournament, the digital rights of which were previously held by Disney.

If the deal happens, Reliance will inject funds to secure a minimum 51 per cent stake in the amalgamated entity, with Disney retaining the remaining ownership, as per Bloomberg's sources. The report, however, did not specify the financial terms of the deal.

Earlier in the day, the Economic Times newspaper reported that the two companies are in the final stages of delineating the particulars of a non-binding term sheet outlining the merger of their media operations in India.

As of now, neither Disney nor Reliance has promptly responded to Reuters' requests for comment.

In October, reports surfaced that Reliance was evaluating Disney's India assets, encompassing the Disney+ Hotstar streaming service and Star India, at a valuation ranging from $7 billion to $8 billion. During the same period, Disney valued these operations at $10 billion.

With inputs from Reuters

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