Disney and Reliance have agreed to merge their media operations in India

Walt Disney and Reliance Industries have entered into a binding agreement to merge their media operations in India , according to sources cited in a Bloomberg report. The report suggests that Reliance Industries, led by Mukesh Ambani, will likely possess a 61% stake in the combined entity, while Disney rethinks its strategy in India due to heightened competition.

Representatives from Disney and Reliance declined to comment on the reports regarding the binding merger agreement.

The report suggested that changes in the share distribution among partners may occur due to the inclusion of Disney’s additional local assets at the deal’s conclusion. Additionally, Reliance Industries is considering acquiring Tata Play Ltd., a broadcast service provider, where Disney holds a minority stake.

Currently, Tata Sons owns a majority stake of 50.2% in Tata Play, while the remaining shares are held by Disney and Temasek, a Singapore-based investment firm.

The beginning of a massive media company

Following the merger’s conclusion, Disney and Reliance will establish a dominant and impactful media powerhouse in one of the world’s swiftly expanding entertainment markets. Reliance is reportedly investing $1.5 billion for its 61% stake.

The merger follows pivotal years for Disney, as Reliance emerged as a direct competitor in the OTT (over-the-top) space. The two giants fiercely competed for sports rights, but in 2022, Mukesh Ambani’s enterprise triumphed over Disney in securing streaming rights for the Indian Premier League (IPL) cricket tournament.

In the same year, Reliance secured a multi-year deal to broadcast HBO shows from Warner Bros Discovery Inc., formerly under Disney’s control. Facing strong competition, Disney had to stream the ICC World Cup 2023 for free on its mobile app in India.

The Disney-Reliance merger is one of the two major transactions in India’s media and entertainment sector. Last month, merger talks between Sony and Zee Entertainment Enterprises Ltd (ZEEL) fell apart due to disagreements over the leadership of the newly merged media giant.

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