Reliance Industries (RIL) and Walt Disney Co. are in talks to merge their media businesses
According to a report by The Economic Times, Walt Disney Co. and Reliance Industries (RIL), owned by Mukesh Ambani, are in talks to combine their Indian media businesses.
Disney Star India might get acquired by Viacom18
According to the talks, Disney's Star India will be acquired by a newly established division of Reliance's Viacom18 through a share swap deal in January.
The English Daily further revealed that Disney owns 49% of the prospective Viacom18 business, with Reliance potentially paying cash for a 51% share. Nonetheless, the publication states that both parties should have equal representation on the unit's board.
Bloomberg revealed in October that Disney's India assets, which include Star India and the Disney Hotstar streaming service, were valued between $7 billion and $8 billion by Reliance's entertainment division in India. At the time, Disney claimed the operations were worth $10 billion.
Jio Cinema is leading the game
According to many media sources, Disney has looked into selling or finding a partner for its Indian holdings. It has reportedly held discussions with billionaires Gautam Adani and Kalanithi Maran, the owner of Sun TV Network, as well as private equity company Blackstone.
But Disney might now give Reliance a majority share in the company.
Disney India and other streaming services are under more pressure from Reliance, whose broadcast venture Viacom18 operates Jio Cinema. Ambani is promoting the platform by providing free access to the IPL cricket competition, the digital rights to which were previously owned by Disney.
Disney witnessed decrease in number of subscribers
Disney Star has witnessed a decline in subscriber numbers subsequent to losing the IPL streaming rights; nevertheless, the cricket business has not been lost entirely, as the television rights are still valid until 2027.
It decided last year to provide ZEE Entertainment Enterprises Ltd. a four-year TV rights license for International Cricket Council men's matches, with Disney Hotstar keeping digital rights.
Reliance's Jio Cinema recorded 32 million concurrent viewers for the free IPL match
In May, Jio Cinema, the Reliance-supported streaming service, attracted a record 32 million concurrent viewers for the free IPL final.
The company, which recently inked a multi-year deal to stream Warner Bros Discovery Inc.'s exclusive content in India, has started charging for some of the content on the site.
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