Reliance Industries Limited braces to acquire 50% stake in Disney India

In anticipation of the massive merger between the two media companies in the coming months, Reliance Industries Limited (RIL), founded by billionaire Mukesh Ambani, is expected to purchase more than 50% of Disney India, according to Reuters.

In anticipation of the massive merger between the two media companies in the coming months, Reliance Industries Limited (RIL), founded by billionaire Mukesh Ambani, is expected to purchase more than 50% of Disney India, according to Reuters.

It is anticipated that Ambani’s Reliance will acquire between 51 and 54 percent of the company, valuing the US giant’s domestic operations at $3.5 billion. Due to the transaction, Disney’s valuation—which was previously projected to be between $15 and $16 billion—has significantly decreased.

While RIL is anticipated to acquire roughly 51% of Disney India, Bodhi Tree, a joint venture between James Murdoch and Uday Shankar, a former senior Disney executive, would likely acquire approximately 9% of the company. Disney will own almost 40% of the shares.

Disney+ Hotstar had witnessed low market in India

 

In light of the breakdown of a second $10 billion merger plan between Japan’s Sony and India’s Zee Entertainment last week, the deal will solidify Reliance’s grasp over India’s $28 billion media and entertainment business.

Reliance and Disney, who together own 120 television stations and a streaming service, have been in negotiations for months to establish an entertainment powerhouse in the country with the largest population in the world.

Disney is likely to hold about 40% of the shares and Reliance and associated businesses to control 50%, though the exact number may vary.

 

The deal talks were in their advanced stages, according to a source cited by Reuters, and while some tax-related issues were still being worked out, the general parameters were practically set.

Zee Entertainment backed out of a $1.4 billion transaction as a result of the Zee-Sony merger falling through, which contributed to the notable decline in Disney India’s valuation. Disney is now considering suing ZEEL for terminating the deal, according to sources cited in the Hindustan Times.