Reliance, Disney Sign Non-Binding Agreement For Mega Merger: Reports

Mumbai: Reliance Industries and Walt Disney are set to merge their Indian media operations, creating one of the nation’s largest entertainment conglomerates. As per reports, Reliance is set to hold a majority stake of 51%, secured through a combination of shares and cash, while Disney will retain the remaining 49%. The non-binding term sheet has been signed, paving the way for the potential merger that could be finalized by February, subject to regulatory approvals, with Reliance aiming for completion by the end of January.

This strategic move is expected to strengthen Mukesh Ambani’s Reliance group’s control over the new entity, positioning it as a formidable competitor against TV giants like Zee Entertainment and Sony, as well as popular streaming services such as Netflix and Amazon Prime. Reliance has been actively challenging Disney, notably by offering free streaming of Indian Premier League (IPL) cricket matches, which significantly boosted subscriber numbers for Disney’s Hotstar app.

Reliance’s media and entertainment unit, Viacom18, currently operates various TV channels and the JioCinema streaming app. The proposed merger involves a unit under Viacom18 taking control of Star India through a stock swap, according to the report. The deal is expected to involve a significant investment, with parties considering injecting $1 billion to $1.5 billion into the business.

The board structure is under consideration, with the possibility of an equal representation of directors from Reliance and Disney, including at least two independent directors. This collaborative effort aims to create a powerhouse in the Indian entertainment industry, marking a significant development in the evolving media and streaming services landscape.