Disney-Reliance Merger signed

Disney-Reliance Merger: For the past few months, it is known that there is a merger discussion ongoing between Reliance Industries and Disney. As per the latest buzz, it is reported that both the organizations have signed on this.

The Walt Disney Company and Reliance Industries have signed a historical agreement to merge their media businesses in India, Bloomberg reported the same citing reliable sources. Reliance Industries will invest in 61 per cent stake in the post-merger company. The remaining stake will be held by Disney. It is reported that this transaction is likely to take place in the form of cash-share transfer. However, Both the organizations have not made any official statement on this yet.

Sources said the share transfers between these two companies may change before the deal is finalised. Disney has a minority stake in broadcast service provider Tata Play Ltd. It is reported that Reliance is likely to buy the same. On the other hand, Disney is facing many challenges in India in retaining subscribers. At the same time, Reliance has recently invested in several entertainment and media businesses in the country. Mukesh Ambani-led Reliance is eager to dominate the domestic media and entertainment sector, to have an edge over well established Netflix and Amazon Prime. It is well known that in 2022, Reliance acquired the broadcasting rights of IPL, pushing back Disney. In the same order, HBO also acquired the broadcast of shows belonging to Warner Bros. Discovery, which was previously owned by Disney.

The post-merger company will be to one of the leading entertainment companies in the country. The new company to get 70 channels in eight languages from Star India and 18 to 38 channels from Reliance’s Viacom. Apart from these, there will be two streaming platforms – Disney Hotstar and Jio Cinema. Will have to wait and watch which platforms will air what and it’s pricing.