Reliance Industries Limited (RIL) and The Walt Disney Company have signed a binding agreement to combine their media operations in India as part of a major entertainment deal, Bloomberg reports.
Under the agreement, Reliance’s media division and its affiliates will own at least 61% of the combined company, with Disney holding the remainder.
Disney has reportedly agreed to sell 61 percent of its India business to Viacom18 at a valuation of $3.9 billion (Rs. 33,000 crore).
Viacom18 is owned by Reliance Industries Limited (RIL) Chairman Mukesh Ambani.
Earlier this month, there were reports that Disney had agreed to sell his 60% of its India business to Viacom18. This agreement is expected to be a significant step in the Indian media and entertainment industry.
Last month, Japan’s Sony abandoned its planned merger with Zee Entertainment, which was called off due to disagreements over the leadership of the media company to be merged.
Amid criticism from activist shareholder Nelson Peltz over poor succession planning, Disney recently announced that Morgan Stanley CEO James Gaumont and former Sky CEO Jeremy Darroch In late November, the company appointed two new directors, Mr. That same month, Walt Disney CEO Iger said in a November conference call that the company was “considering options” but wanted to remain in India to “strengthen our hand, improve the bottom line.” said.
This is his third venture into India with Disney. Initially he was in 1993 due to his affiliation with K. K. Modi’s group. Then they bought Ronnie Screwvala’s UTV, which also didn’t go to script.
Investor enthusiasm for Disney’s India operations has been exacerbated by the company’s success in acquiring television rights but losing the online broadcast rights for the popular IPL tournament from 2023 to 2027. It started to decline in 2013.