Mukesh Ambani-led Reliance Industries and Walt Disney Co have reportedly signed the deal to merge their media operations, Viacom18 and Star, in India. Reliance is expected to own at least 61 per cent in the merged entity, with Disney holding the rest.
According to a report in Bloomberg, the deal is expected to be announced publicly this week. The report stated that the stake split between the partners may change, depending on how Disney’s other local assets are factored at the time of closing of the deal. Reliance may also consider acquiring Disney’s minority stake in broadcast service provider Tata Play.
The report of the deal signing comes after Wall Street Journal reported last month that Disney agreed to sell 60 per cent of its Indian business to Viacom18 at a valuation of $3.9 billion.
Reliance was evaluating Disney's India assets, including Disney+ Hotstar streaming service and Star India, at a valuation ranging from $7 billion to $8 billion last year.
In 2022, Reliance had outbid Disney to win the streaming rights for the Indian Premier League (IPL), as well as bagged a multi-year pact in April to broadcast Warner Bro Discovery Inc’s HBO shows.
The Reliance-Disney transaction comes at a time when another large deal involving Sony Group and Zee Entertainment Enterprises fell apart due to differences on who would lead the merged entity.