Media Power Play: In a strategic move set to reshape the media landscape in India, Reliance Industries and Walt Disney are reportedly finalizing the details of a non-binding term sheet for the merger of their respective media operations in the country. According to insiders familiar with the deal, the current terms suggest the formation of a new unit under Reliance’s Viacom18, which will absorb Disney’s Star India through a share swap deal. An official announcement of the deal is expected in January.
As per the proposed arrangement, Reliance is likely to pay in cash for a 51% stake in the envisioned Viacom18 unit, while Disney would retain a 49% ownership stake. The unit’s board is expected to feature equal representation from both Reliance and Disney, creating a collaborative governance structure.
Both Reliance and Disney have not provided immediate comments or official statements regarding the reported merger. The speculated valuation of Disney’s India assets, including the popular streaming service Disney+ Hotstar and Star India, was estimated to be in the range of $7 billion to $8 billion by Reliance back in October.
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This potential merger reflects the ever-evolving dynamics of the media and entertainment industry, with companies seeking synergies and strategic partnerships to navigate the competitive landscape. The combination of Viacom18 and Disney’s Star India could result in a media powerhouse with diverse content offerings and significant market influence.
The move comes as Reliance Industries continues to expand its presence in the media sector, leveraging its existing broadcast venture Viacom18, which operates JioCinema. Disney, a global media giant, has been actively exploring opportunities to enhance its foothold in the rapidly growing Indian market.
If completed, the collaborative endeavor might change India’s media and entertainment industry and how content is developed, distributed, and consumed in one of the world’s largest markets. As details are finalized, industry analysts will watch for official announcements and their influence on India’s media industry.