Mukesh Ambani-led Reliance Industries and Walt Disney have signed a non-binding pact that will pave way for merger of their Indian media businesses, latest media reports say. A Reuters report quoting ET said that mega merger is believed to be completed by February 2024. The report also said that the merger would give more control to RIL because under the yet-to-be-formally announced deal, while Ambani’s company, which is India’s most valuable corporate entity will hold 51 per cent shares, the rest of the 49 per cent shares will be owned by Disney. The merger would be via combination of both cash and stocks.
Earlier this month, Reuters had reported that the officials of both RIL and Disney had held discussions in London for the next phase of the mega media merger. As and when this merger actualizes, it would create India’s largest media entertainment behemoth. This would directly compete with Zee-Sony, Amazon Prime as Netflix. At present, RIL is running several streaming apps and TV channels via its entertainment arm Viacom18.
The Reuters report also says that since January this year, Disney has been actively considering either a sale or the formation of a joint venture partnership for its India business, encompassing numerous TV channels. Reuters quoting ET says that the suggested agreement involves establishing a unit within Reliance’s Viacom18 to assume control of Star India through a stock exchange. The parties are currently developing a strategy to infuse $1 billion to $1.5 billion into the business; however, it remains unspecified whether this represents the total investment or the individual contribution from each party.