In a significant development, Mukesh Ambani’s Reliance Industries is reportedly engaged in discussions with Walt Disney Co to merge their Indian media operations. The Economic Times reported that a newly-formed unit of Reliance’s Viacom18 would absorb Disney’s Star India through a share swap deal in January, as per ongoing talks.
The proposed deal suggests Reliance may pay cash for a 51% stake in the Viacom18 unit, while Disney would retain a 49% stake. The unit’s board is expected to have equal representation from both entities.
Previously, Bloomberg had reported that Reliance’s entertainment unit valued Disney’s India assets, including Disney Hotstar streaming service and Star India, between $7 billion and $8 billion, while Disney valued the operations at $10 billion.
This potential merger comes amid increased competition in the Indian media and streaming landscape, with Reliance’s JioCinema putting pressure on Disney India and other platforms. Ambani’s platform gained attention by offering free access to the IPL cricket tournament, which was previously under Disney’s digital rights.
The evolving media landscape in India will be closely watched as these discussions progress, signaling potential shifts in the industry’s dynamics.
