homebusiness Newscompanies NewsReliance Industries and Walt Disney sign non binding term sheet to merge Indian media operations: Report
Reliance Industries and Walt Disney sign non-binding term sheet to merge Indian media operations: Report
Reliance Industries has not commented on CNBC-TV18’s query on Disney India merger reports. As per The Economic Times report, Reliance-owned Viacom18 will establish a step-down subsidiary absorbing a significant portion of Star India's stock, resulting in a 51%:49% share holding pattern.
Reliance Industries and Walt Disney signed a non-binding term sheet to merge their Indian media operations, The Economic Times reported on Monday, citing sources it did not name.
Reliance Industries has not commented on CNBC-TV18’s query on Disney India merger reports.
As per The Economic Times report, Reliance-owned Viacom18 will establish a step-down subsidiary absorbing a significant portion of Star India's stock, resulting in a 51%:49% share holding pattern. . Reliance will own 51% & Disney 49% in the merged Indian media company, the report said.
Jio Cinema will also be included in the merger, with Reliance anticipated to retain a major stake and pay cash for controlling stock in the merged entity.
After sealing the term sheet in the UK last week, Reliance and Disney are expected to finalise the significant entertainment and media merger in India by February 2024, impacting the country's viewing and streaming landscape.
Despite Reliance's push to conclude the deal by January, the mega-merger is slated to undergo all commercial ratifications and regulatory approvals by February, as per the report by The Economic Times.
As per the sources quoted by the daily, months of negotiations resulted in the non-binding agreement signed in London, attended by Kevin Mayer, a former Disney executive, and Manoj Modi, a trusted aide to Mukesh Ambani.
A possible merger would create one of India’s biggest entertainment empires, setting it in competition with TV players like Zee Entertainment and Sony and streaming giants such as Netflix and Amazon Prime.
The acquisition could be announced as early as next month. Under the proposal, Disney will likely continue to hold onto a minority stake in the Indian company after any cash and stock swap transaction is completed.
(Edited by : Amrita)
First Published: Dec 25, 2023 12:54 PM IST
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