In a landmark move, Reliance Industries Ltd and Walt Disney Co. have taken a substantial stride towards an industry-shaping merger.
The non-binding agreement, signed in London last week, anticipates finalization in February 2024, promising a paradigm shift in India’s entertainment landscape.
The mega-merger, poised to significantly favor Mukesh Ambani’s Reliance, is set to conclude all commercial and regulatory requirements by February, marking a pivotal moment in the companies’ negotiations spanning several months.
Despite efforts by Ambani’s company to expedite the process by January, the comprehensive deal is expected to receive its finishing touches in February.
The collaboration witnessed in the UK last week, attended by key figures like Kevin Mayer and Manoj Modi.
As this alliance progresses, the fate of the $10 billion merger between Zee Entertainment Enterprises and Sony Group Corp.’s local unit remains uncertain.
The potential deal, announced two years ago, faces delays as the two parties seek an extension for final deliberations, with a resolution expected by January 2024.
Reliance-Disney Star Deal Highlights:
- Reliance’s Viacom18 to establish a step-down subsidiary absorbing the majority of Star India’s stock.
- Anticipated 51-49 per cent share split between Reliance and Disney.
- Jio Cinema to be integrated into the mega-merger.
- Reliance expected to hold a substantial stake, with cash transactions for controlling stock.
- Potential boost for Disney’s OTT app Disney+ Hotstar, currently experiencing significant losses.
The regulatory spotlight on a Disney-Reliance merger centers on their streaming businesses and advertising dominance during the cricket season. This scrutiny reflects the transformative potential of the merger, poised to redefine the Indian sports viewing experience.
