In a mega deal in the entertainment segment, Reliance Industries Limited (RIL) and Walt Disney Co have signed a binding agreement to merge their media operations in India, according to a Bloomberg report.
As per the agreement, the media unit of Reliance and its affiliates are expected to own at least 61 per cent in the merged entity, with Disney holding the rest.
Disney reportedly agreed to sell 61 per cent of its India business to Viacom 18 at a valuation of $3.9 billion (Rs 33,000 crore).
Viacom18 is owned by Reliance Industries Limited (RIL) Chairman Mukesh Ambani.
There were reports earlier this month that Disney had agreed to sell 60 per per cent of its Indian business to Viacom18. The deal is expected to be a significant move in the Indian media and entertainment industry.
Last month, Sony of Japan dropped its merger plan with Zee Entertainment ended due to disagreements regarding the leadership of the proposed merged media entity.
In the line of fire from activist shareholder Nelson Peltz for poor succession planning, Disney recently appointed two new directors – Morgan Stanley CEO James Gormon and former group chief executive at Sky Sir Jeremy Darroch, late November. In the same month, Walt Disney CEO Iger said on an earnings call in November that the company was “considering options” but that it would like to stay on in India and try and “strengthen our hand, improve the bottom line”.
This is Disney’s third entry into India. The first in 1993 was through an alliance with KK Modi’s Group. Then it bought into Ronnie Screwvala’s UTV but that too did not go as per script.
Investor enthusiasm for Disney’s India business started depleting in 2022 after the company lost the online rights to stream the popular IPL tournament from 2023-2027 even as it successfully won broadcast TV rights.
