Walt Disney Co. and Reliance Industries Ltd. have finally struck a significant deal to merge their media operations in India, reacting to tough competition in the country, which has the world’s largest population.
Sources familiar with the matter expect the formal announcement of this agreement in the coming days.
Under the deal, Mukesh Ambani’s Reliance is anticipated to own at least 61% of the merged company, with Disney holding the rest, according to inside reports.
The merger follows Reliance’s win over Disney in securing streaming rights for the Indian Premier League (IPL) in 2022.
Disney has been exploring options for its India business since July 2023, including a potential sale or forming a joint venture.
The deal between Reliance and Disney is part of a bigger plan to combine media companies in India. This comes after the recent Zee-Sony merger failed.
Stake distribution may change depending on Disney’s additional local assets included in the deal.
The merger would create a strong media player in India, where Reliance’s dominance is evident from its IPL streaming rights win and a recent agreement to broadcast HBO shows.
Disney’s streaming service, Disney+ Hotstar, saw high viewership during the Cricket World Cup but opted for free matches to regain subscribers, unlike Reliance, which streamed IPL matches for free in 2023, attracting a huge audience.
