Reliance Industries and Walt Disney have officially agreed to combine their media businesses in India, according to persons familiar with the situation who were cited in a Bloomberg article. The article stated that as Disney reevaluates its strategy in India amid fierce competition, Mukesh Ambani-led Reliance Industries is anticipated to control a 61% interest in the combined company.
According to the article, Disney’s extra local assets may be included when the acquisition is finalized, which could result in changes to the partners’ share split. Disney owns a minority ownership in Tata Play Ltd., a broadcast service provider, which Reliance Industries is also considering buying.
Disney and the Singaporean investment company Temasek own the remaining shares of Tata Play, with Tata Sons currently holding the majority 50.2% of the company’s shares.
The beginning of a massive media empire
Disney and Reliance would combine to form a strong and significant media conglomerate in one of the world’s fastest-growing entertainment industries when the merger was completed. According to the rumors, Reliance is funding its 61% share with $1.5 billion.
Disney was compelled to provide free streaming of the ICC World Cup 2023 to Indian subscribers of their mobile application due to fierce competition.
With Reliance emerging as a direct rival in the over-the-top (OTT) market, Disney’s fortunes took a sharp swing, and the company underwent several crucial years before to the merger.
On Friday, Reliance Industries’ shares finished at ₹2,986.55 a share, up 0.78%.
