Reliance Industries (RIL) is reportedly in discussions with Walt Disney Co to merge their Indian media operations, as per The Economic Times. According to the report, a recently established division of Reliance, Viacom18, is set to absorb Disney’s Star India through a share swap deal in January.
The English Daily reported that Reliance might use cash to acquire 51% ownership in the planned Viacom18 unit, with Disney holding the remaining 49%. Nevertheless, the unit’s board is anticipated to feature an equal representation from both parties, as per the newspaper.
In October, Bloomberg stated that the entertainment division of Reliance in India was appraising Disney’s Indian assets, including the Disney Hotstar streaming service and Star India, at a valuation ranging from $7 billion to $8 billion. Concurrently, Disney assessed the worth of these operations at $10 billion.
Disney previously explored options to sell or find a partner for its India assets, engaging in discussions with billionaires Gautam Adani and Kalanithi Maran, as well as private equity firm Blackstone, according to various media reports. However, there are recent indications that Disney might opt to sell a controlling stake in the business to Reliance.
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Reliance, whose broadcast venture Viacom18 operates JioCinema, has intensified competition for Disney India and other streaming platforms. Ambani, the owner of Reliance, has promoted the platform by providing free access to the IPL cricket tournament, the digital rights of which were previously held by Disney.
Disney Star has experienced a drop in subscribers following the loss of IPL streaming rights. However, it still holds onto a significant portion of the cricket business by securing television rights until 2027. In the previous year, it entered an agreement with ZEE Entertainment Enterprises Ltd. to license TV rights for International Cricket Council men’s matches for a four-year period. Meanwhile, Disney Hotstar retains the digital rights.
JioCinema, the streaming service supported by Reliance, achieved an unprecedented 32 million simultaneous viewers in May during the IPL final, offered for free on the platform. Following a multi-year agreement to stream Warner Bros Discovery Inc’s exclusive content in India, the platform has started introducing charges for certain content.
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