Mukesh Ambani's Reliance Industries set to commandeer a 61% stake, as Disney adapts its India strategy amid fierce market dynamics
Disney and Reliance Industries have officially entered into a binding merger agreement to consolidate their media operations in India, as per recent reports. In this strategic move, Reliance Industries, led by Mukesh Ambani, is anticipated to secure a 61% stake in the merged entity, signalling a significant shift in Disney’s approach to the Indian market amidst heightened competition.
Representatives from both Disney and Reliance declined to comment on the reported merger agreement.
The distribution of shares among the merging entities may undergo adjustments, especially with the potential inclusion of Disney’s local assets into the final deal structure. Additionally, Reliance Industries is exploring the acquisition of Tata Play Ltd., a broadcasting service provider where Disney holds a minority stake.
Currently, Tata Sons holds a majority ownership interest of 50.2% in Tata Play, with the remaining shares held by Disney and Temasek, a Singapore-based investment firm.
Once the merger is finalised, Disney and Reliance will establish a formidable media conglomerate in one of the world’s fastest-growing entertainment markets. Reliance’s investment of $1.5 billion for the majority stake underscores its commitment to shaping the future of Indian media.
Also Read: Mastering merger value: Five fundamental principles for success
This merger follows a pivotal period for Disney, during which it faced formidable challenges from Reliance in the Indian OTT (Over-The-Top) space. The competition intensified, particularly in securing sports broadcasting rights, culminating in Reliance’s successful bid for streaming rights to the Indian Premier League (IPL) cricket tournament in 2022, previously held by Disney.
Moreover, Reliance struck a significant deal to broadcast HBO shows from Warner Bros Discovery Inc., formerly under Disney’s domain, further intensifying the rivalry. Under pressure, Disney was compelled to stream the ICC World Cup 2023 at no cost to users of its mobile application in India.
The Disney-Reliance merger marks one of the largest transactions in the Indian media and entertainment sector.
