According to sources, Walt Disney Co. and Reliance Industries Ltd. have reached an agreement to consolidate their media businesses in India, as the US entertainment giant rethinks its approach in the world's most populous country.
The media business of Reliance, headed by billionaire Mukesh Ambani, and its affiliates are expected to possess at least 61% of the amalgamated entity, with Disney holding the remainder, according to the people, who asked not to be identified because the information is private.
The sources stated that the most recent milestone and further information will probably be revealed early this week. A Disney spokesman said they would not comment. A question about the signing of the binding agreement was not immediately answered by a Reliance representative either.
Disney Reliance partnership
The ownership split between the partners may change depending on how Disney's other local holdings are accounted for by the time the purchase is closed, according to the sources. According to local news reports, Disney owns a minority investment in Tata Play Ltd, a broadcast service provider that Reliance may explore acquiring.
Reliance has recently taken a bigger share of the Indian media and entertainment industry, whereas Disney has been struggling to hold onto subscribers and acquire desired media assets. In one of the entertainment markets with the fastest rate of growth in the world, they would combine to build a powerful media giant.
In 2022, Ambani's firm outbid Disney for the streaming rights to the Indian Premier League, or IPL, cricket event. In April, it secured a multi-year agreement to transmit the HBO series owned by Warner Bros Discovery Inc.; previously, the shows were under Disney.
Dipping viewership for Disney Hotstar
Disney Hotstar, the streaming service, attempted to win back subscribers even if it meant sacrificing money by showing the Cricket World Cup matches for free in the cricket-crazed country, even though it managed to draw in record numbers of viewers in October and November. Earlier in 2023, Reliance streamed free IPL matches, attracting large numbers of spectators.
Since July, Disney has been considering several possibilities for its India operations, such as an outright sale or the formation of a joint venture with partners.
This deal is a component of the greater attempts at media and entertainment sector consolidation in India. Sony Group Corp. had intended to combine its local division with Zee Entertainment Enterprises Ltd., but last month the deal fell through due to disagreements over who would become the head of the combined media empire.
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