Reliance on Tuesday panned reports on a potential merger with Disney's India unit, stating they are unable to comment. "We would like to clarify that we are unable to comment on media speculation and it would be inappropriate on our part to do so. The firm evaluates various opportunities on an ongoing basis. Further, there is no information which has not been announced to the stock exchanges and which should have been announced by the Company in terms of the SEBI Regulations, 2015," the group said in an exchange filing.
Bloomberg had reported that Walt Disney Co.’s India unit is being valued at less than half of what it hoped for in a proposed merger with Mukesh Ambani’s media business. After weeks of negotiations following a non-binding pact with Ambani’s Reliance Industries Ltd. to merge their entertainment business, Disney’s India assets, the report state, valued at around $4.5 billion, less than the $10 billion the US entertainment giant has previously pursued.
The combined entity will be valued at as much as $11 billion, with Disney taking about a 40% stake, the report said.
Reliance will have a 51% stake, with the rest held by James Murdoch’s Lupa Systems LLC. The two companies aim to sign a binding deal in February, the people said. The merger could deepen Ambani’s push into the media and sports industries and further consolidate India’s $28 billion media and entertainment market. The collapse of a proposed $10 billion merger between Sony Group Corp.’s India unit and Zee Entertainment has also cleared a potential major competitor.