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Reliance nears mega deal to buy Disney's India business: Report

Reliance nears mega deal to buy Disney's India business: Report

Reliance values Disney’s India assets at between $7 billion and $8 billion, said the report

Business Today Desk
Business Today Desk
  • Updated Oct 23, 2023 5:27 PM IST
Reliance nears mega deal to buy Disney's India business: ReportReliance nears mega deal to buy Disney's India business: Report

Mukesh Ambani-led Reliance Industries Ltd is nearing a cash and stock deal to buy Walt Disney Co.’s India operations, said a report on Monday. 

The US entertainment giant may sell a controlling stake in the Disney Star business, which it values at around $10 billion, while Reliance, whose broadcast venture Viacom18 runs JioCinema, values Disney’s India assets at between $7 billion and $8 billion, the report said, reported Bloomberg.

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The acquisition could be announced as early as next month with some of Reliance’s media units merged into Disney Star, the report added quoting sources. 

Disney has been exploring options to sell or find a partner for its India assets, Reuters reported in July, and has held talks with billionaires Gautam Adani and Sun TV Network-owner Kalanithi Maran as well as private equity firm Blackstone, according to various media reports.

Earlier this month, Reuters reported that Blackstone  has held preliminary discussions with Walt Disney to acquire a stake in the Indian arm of the entertainment firm.

With subscriber exits accelerating, Disney has sought to revive the fortunes of its streaming business in India by offering free cricket on smartphones, betting that the strategy will boost advertising revenue.

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It has meanwhile lost streaming rights for some key cricket tournaments to RIL's broadcasting unit - including the Indian Premier League and the national cricket team's bilateral matches.

Disney’s India business, which comprises the Disney+ Hotstar streaming service and Star India, was its biggest last year globally by users. It posted a loss of $41.5 million on revenue of $390 million for the year to March 2022.

JioCinema has put increased pressure on Disney India, with Ambani marketing the platform by offering free access to the Indian Premier League cricket tournament, digital rights of which were earlier with Disney.

Moreover, earlier this year, Viacom18 struck a deal with Warner Bros for its content, including HBO media. Several of these shows earlier aired in India on the Disney platform.

Published on: Oct 23, 2023 5:27 PM IST
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