Disney and Reliance Forge Binding Pact to Merge India Media Operations
Reliance’s Majority Stake in Merged Entity: Ownership Structure Revealed
Walt Disney and Reliance Industries have reportedly entered into a binding agreement to consolidate their media operations in India, marking a significant development in the ever-evolving landscape of the country’s entertainment industry. Amidst fierce competition in one of the world’s most populous nations, the move reflects Disney’s strategic realignment to navigate and thrive in the dynamic Indian market.
According to individuals familiar with the matter, the media arm of Reliance, spearheaded by billionaire Mukesh Ambani, and its associated entities are anticipated to hold a controlling stake of at least 61 percent in the merged entity. In contrast, Disney is slated to retain a minority ownership share in the combined venture. These insiders, preferring anonymity due to the confidentiality of the information, revealed key ownership details underscoring the intricate nature of the partnership.
The impending announcement of this landmark merger, expected to be disclosed early in the upcoming week, signals a pivotal moment for both companies and the broader media landscape in India. With further details yet to be unveiled, stakeholders eagerly await insights into the strategic vision and synergistic opportunities driving this collaboration between two industry behemoths poised to reshape the entertainment ecosystem in one of the world’s fastest-growing markets.
A Disney representative declined to comment. A Reliance spokesperson didn’t immediately respond to a query on the signing of the binding pact.
The stake split between the partners may change, depending on how Disney’s other local assets are factored in by the time the deal is closed, the people said. Reliance shares fell as much as 0.5 percent during trading in Mumbai, broadly in line with the slight decline in the benchmark S&P BSE Sensex.
Disney has been mulling options for its India business, including an outright sale or setting up a joint venture with partners since July.
This transaction is part of the larger consolidation efforts in the Indian media and entertainment space. Sony Group planned to merge its local unit with Zee Entertainment Enterprises until differences cropped up on who’ll lead the new merged media giant that ultimately gutted the deal last month.
