The long-anticipated mega-merger between Reliance and Disney Star has taken a significant step forward with the signing of a non-binding agreement in London last week. As per the agreement, the finalization of this colossal merger is expected to occur in February 2024.
Key Points on the Reliance-Disney Star Deal:
1. The merger is poised to become the largest entertainment merger in India, with both Reliance and Disney controlling the merged entity equally.
2. The objective of the merger is to create a Viacom18 subsidiary (owned by Reliance), absorbing Star India through a stock swap.
3. Mukesh Ambani’s Reliance will emerge as the majority shareholder, owning a 51% stake, while Walt Disney Co. will hold the remaining 49%.
4. The deal encompasses Reliance’s OTT platform Jio Cinema and Disney+ Hotstar, aiming to enhance the position of Hotstar, which has been grappling with losses.
5. An investment exceeding $1.5 billion from both Reliance and Disney Star is expected, facilitating Ambani’s firm to gain distribution control over Star India’s channels.
6. The merger extends beyond TV channels and OTT platforms, focusing on leveraging advertising prowess, especially during the cricket season in India.
7. Disney Star’s interest in the deal is linked to the intense bidding battles with Reliance over cricket streaming rights and a strategic move to strengthen its presence in India.
8. While Reliance will wield control in the merger, Disney is anticipated to reap substantial benefits, particularly since its TV channels have been profitable in India.
9. Mukesh Ambani’s eldest son, Akash Ambani, is expected to join the board of directors, along with Uday Shankar of Bodhi Tree, a major shareholder in Viacom18 after Reliance.
10. The merged entity is projected to become a formidable competitor to streaming services like Netflix and Amazon.
The impending Reliance-Disney Star merger is poised to reshape the entertainment landscape in India, promising significant implications for viewers, advertisers, and the industry at large.
Stay tuned for in-depth coverage and analysis as the Reliance-Disney Star mega-merger unfolds.
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