New Delhi: Reliance Industries Limited (RIL) and Walt Disney Co have recently finalized a significant agreement to merge their media operations in India, marking a major development in the entertainment sector. According to a report by Bloomberg, under this agreement, the media unit of Reliance and its affiliates are anticipated to possess a minimum of 61 percent stake in the combined entity, while Disney will retain the remaining portion.
As part of the deal, Disney is set to divest 61 percent of its Indian business to Viacom18 at a valuation of $3.9 billion (approximately Rs 33,000 crore). Notably, Viacom18 is under the ownership of Reliance Industries Limited (RIL) Chairman Mukesh Ambani.
Earlier reports had indicated Disney’s intention to sell 60 percent of its Indian business to Viacom18. This move is expected to have a significant impact on the Indian media and entertainment landscape.
In recent times, Sony’s merger plans with Zee Entertainment fell through due to disagreements over leadership issues within the proposed merged entity.
Facing criticism from activist shareholder Nelson Peltz regarding succession planning, Disney has made changes in its board composition, appointing Morgan Stanley CEO James Gorman and former group chief executive at Sky Sir Jeremy Darroch as new directors. In November, Walt Disney CEO Iger expressed the company’s determination to remain in India and improve its position within the market.
This marks Disney’s third foray into India, following its earlier alliances with KK Modi’s Group in 1993 and its acquisition of Ronnie Screwvala’s UTV. However, challenges have arisen, deviating from the expected outcomes in these ventures.
Investor confidence in Disney’s India business saw a decline in 2022, particularly after losing online streaming rights for the popular IPL tournament from 2023-2027, despite securing broadcast TV rights successfully.
