Reliance signs deal to merge Walt Disney’s Indian business: Report
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New Delhi. Reliance Industries Limited (RIL) has signed a non-binding agreement with global entertainment giant Walt Disney to merge its Indian business. This information has been given in a media report. According to reports published in the media, Reliance Industries signed this agreement with Walt Disney in London last week. The deal will be 51 per cent cash payment and 49 per cent share transfer.
The report says that the due diligence and evaluation process related to this deal will begin soon and is likely to be completed by February next year. However, Reliance wants to complete it by the end of January only. There was no response to an email sent to Reliance Industries seeking comment on the deal.
A Walt Disney spokesperson declined to comment when contacted. If this deal is completed as per the agreement, it will be the biggest merger in India’s media and entertainment sector. This will create a giant media company worth about $10 billion which will have more than 100 channels and two leading OTT platforms. The company formed after the merger will compete with leading media groups like Zee Entertainment and Sony Pictures and OTT platforms like Netflix and Amazon Prime. Zee Entertainment and Sony are also currently busy in finalizing a merger agreement.
Disney-Star India includes Star India’s vast network and 70 TV channels broadcasting in eight languages, as well as OTT platform Disney Plus Hotstar. Whereas Reliance Industries operates the media business through its firm Viacom 18. It also has a streaming platform in the form of JioCinema which has the rights to broadcast India’s domestic cricket matches for the next five years. After the merger of Disney-Star India, it will help Reliance Industries to expand its media business.
Recently, the company’s units Network18 Media and Investments Limited and TV18 Broadcast have announced the consolidation of their television and digital news businesses. Walt Disney Chief Executive Officer Bob Iger had hinted at selling some businesses in July, citing challenging circumstances. Disney took control of Star following its acquisition of the entertainment division of 21st Century Fox in 2019. However, the last few years have not been good for its Indian business. According to the latest report of Star India, its consolidated net profit has declined by 31 percent to Rs 1,272 crore in the financial year 2022-23. During this period, income increased by nine percent to Rs 20,699 crore. At the same time, the loss of Novi Digital Entertainment, the firm that owns the Disney Plus Hotstar platform, also increased to Rs 748 crore, while its income increased by 35 percent to Rs 4,331 crore.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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