Reliance and Walt Disney signed agreement to merge media business, reports claim

Reliance Industries has entered into a non-binding merger agreement with Walt Disney effective December 25, 2023, relating to the operations of its Indian media business. This information has been given in media reports. Under the merger agreement, Reliance Industries will hold a 51 percent stake through a combination of shares and cash, while Disney will be entitled to the remaining 49 percent. The report said the stake pattern indicates that Mukesh Ambani's Reliance Group will have more power.

Reports claim that the deal will be completed by February 2024, however, Reliance aims to complete the process by January, 2024. Media reports two weeks ago said company executives were meeting in London to discuss the next phase of the media merger.

According to a report, the merger will create one of India's largest entertainment empires, competing with companies with television interests like Zee Entertainment and Sony, and streaming giants like Netflix and Amazon Prime.

Reliance operates several TV channels and JioCinema streaming app through its media and entertainment unit Viacom 18. According to reports, during this deal in London, Kevin Mayer, former CEO of Walt Disney and currently playing the role of advisor, and Manoj Modi, considered close to Mukesh Ambani from Reliance, were also present. According to the report, there is a plan to create a step down subsidiary of Reliance's subsidiary Viacom 18. Under this, Star India will be merged through stock swap.