Reliance Industries and Disney are on the verge of signing a historic media merger deal in India next week
Mukesh Ambani is set to lead Reliance Industries Ltd. into a non-binding pact with Walt Disney Co. The agreement, expected to be finalized possibly on Monday, outlines a cash-and-stock deal aimed at merging their respective media operations in India, as per sources cited by Bloomberg.
Ambani's conglomerate plans to invest funds to secure a minimum of 51 per cent ownership in the merged entity if the deal is successful, as per the report. The remaining stake will be held by Disney, resulting in the creation of one of the most significant media giants in India.
Following the signing of the exclusivity agreement next week, the diligence and valuation processes will commence, with the outcome influencing the amount Reliance plans to invest in the business, as per the report.
The terms of the deal have not been conclusively decided, and both parties retain the option to cancel the transaction, as per the report. The proposed merger plan was initially disclosed by The Economic Times newspaper earlier on Tuesday. This significant multi-billion-dollar transaction, reported by Bloomberg in October, reflects Ambani's substantial aspirations in India's media and entertainment sector, which has already attracted global giants such as Netflix Inc. and Amazon Prime.
In 2022, Reliance acquired the streaming rights for the Indian Premier League for $2.7 billion and secured a multi-year agreement in April to broadcast HBO shows from Warner Bros Discovery Inc. in India.
For Disney, this signifies a move to reduce exposure in a fiercely competitive market, where its subscriber numbers are declining, all the while retaining a foothold in India.