CEO of Walt Disney said, merger with Reliance will increase the company’s profits, reduce risks.
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New Delhi. Walt Disney Chief Executive Officer (CEO) Bob Iger believes that the company will benefit from the joint venture with Reliance Industries after the merger of the Indian business. He said that with this the ‘risk’ of the company’s business in the Indian market will be reduced. Speaking at the Morgan Stanley investor conference earlier this week, Iger said the merger deal would create a larger entity and help it maintain “significant footing” in the market.
“We had the opportunity to join forces with Reliance, obviously a company that has done very well there and that we respect,” Iger said. And in doing so we have become a shareholder in a large media company. We believe that, this will not only increase our profits, but will also reduce our business risk.” Last month, Walt Disney Company and Reliance Industries announced the signing of a definitive agreement to merge their media operations in India. Did.
Under this deal, Reliance and its affiliates will hold 63.16 percent stake in the joint venture. Disney will hold 36.84 percent stake. This will create a big media company in the country, which will have two streaming services and about 120 television channels. “We want to live in India,” he said. When we purchased the assets of 21st Century Fox, it was a great investment. We are one of the largest media companies in India. Even though it is the most populous country in the world, we felt we should live there. “We also know there are challenges in that market.”
Iger said the merger would create a larger entity and help it maintain a “significant position” in the market. As per the deal, the joint venture is valued at Rs 70,352 crore ($8.5 billion). Billionaire Mukesh Ambani-led Reliance has agreed to invest Rs 11,500 crore in a joint venture to take on rivals such as Japan’s Sony and Netflix.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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