Reliance and Walt Disney Forge Media Merger Deal in India

In a significant move shaping the landscape of India's media industry, Reliance Industries, led by Mukesh Ambani, and Walt Disney Co have inked a deal to merge their media operations in the country. The merger will bring together Viacom18 and Star under a single entity, marking a strategic alignment between two media giants.

Reports from Bloomberg indicate that Reliance is poised to hold a controlling stake of at least 61 percent in the merged entity, with Walt Disney retaining the remaining shares. However, the exact stake split might be subject to alteration depending on the valuation of Disney's other local assets at the time of finalizing the deal. Additionally, there's speculation that Reliance might explore acquiring Disney's minority stake in Tata Play, a broadcast service provider, as part of the broader agreement.

The anticipated public announcement of the deal, slated for this week, follows recent reports from the Wall Street Journal indicating Disney's agreement to divest 60 percent of its Indian business to Viacom18 at a valuation of $3.9 billion. Reliance's interest in Disney's India assets, including the popular streaming service Disney+ Hotstar and Star India, has been evident, with valuations ranging from $7 billion to $8 billion under consideration as per last year's assessments.

This move comes against the backdrop of Reliance's notable victories in the Indian media landscape, having secured streaming rights for the Indian Premier League (IPL) in 2022, outbidding Disney in the process. Moreover, Reliance strengthened its content portfolio by securing a multi-year pact in April to broadcast HBO shows from Warner Bros Discovery Inc.

The Reliance-Disney transaction emerges amidst the backdrop of another major deal involving Sony Group and Zee Entertainment Enterprises, which collapsed due to disagreements over leadership roles within the merged entity.

The merger between Reliance and Walt Disney's media operations underscores the ongoing consolidation trend in the Indian media industry, with key players vying for dominance and seeking strategic partnerships to enhance their content offerings and market presence. As the deal progresses, industry analysts and stakeholders will keenly observe its implications on the competitive landscape and consumer experience in India's vibrant media sector.