Reliance and Disney Reportedly Close to Signing Multi-Billion Dollar Agreement in India
According to sources familiar with the matter, Reliance Industries Ltd., which is under the control of Mukesh Ambani, Asia’s wealthiest tycoon, is close to finalizing a cash and stock agreement to acquire Walt Disney Co.’s India operations.
The U.S. entertainment giant may sell a majority stake in the Disney Star business, which it values at about $10 billion, as opposed to partial deals previously considered, the people said, asking not to be named because the discussions are private. Some people said Reliance valued the assets at $7 billion to $8 billion.
The deal could start as early as next month when some of the Reliance media units are merged with Disney Star, the people said, without giving further details.
Under the proposal, Disney is likely to retain a minority stake in the Indian company after all cash and stock swaps are completed, the people said. No final decision on the deal or valuation has been made, and Disney may still decide to hold the assets longer, they added.
A Disney representative in India did not respond to a request for comment, and a Reliance spokesperson declined to comment.
The deal talks represent Ambani’s disruption of India’s entertainment industry after he secured streaming rights to the Indian Premier League for $2.7 billion in 2022. The billionaire’s JioCinema platform then decided to broadcast the hugely popular domestic cricket tournament for free earlier this year.
Reliance then scored another win by inking a multi-year deal to air Warner Bros Discovery Inc’s HBO shows in India, content previously with Disney.
Although Disney Star struggled with sliding subscriber numbers, the media group has not given up on the market and had made investments. It has weighed other business options, including an outright sale or forming a joint venture, Bloomberg News reported in July.
However, Disney’s India streaming platform managed to attract a record 43 million viewers to the men’s Cricket World Cup 2023 match between India and New Zealand on Sunday, the company said in a statement. That was up from the 35 million viewers the much-anticipated India-Pakistan grudge match drew earlier this month.
