Reliance Poised for Acquisition of Disney's India Operations

Reliance Industries Ltd. is poised to finalize a groundbreaking cash and stock deal to acquire Walt Disney Co.’s India operations. The Mukesh Ambani-owned conglomerate, Reliance Industries (RIL), is actively pursuing the purchase of Disney's India business, according to anonymous sources cited in a recent report.

Should this deal materialize, Reliance is expected to emerge as the majority stakeholder in Disney's India business, a venture valued at a substantial $10 billion, as reported undisclosed sources.

While specific source details remain undisclosed, the report underlines Reliance's valuation of the assets to be between $7 billion and $8 billion, with an official announcement of this monumental acquisition potentially taking place next month.

Furthermore, both entities are reportedly exploring the possibility of merging some of Reliance's media units into Disney Star. In line with the proposed agreement, once the cash and stock swap transactions are concluded, Disney might potentially become a minority stakeholder in the Indian company, although it also has the option to retain the assets for an extended period.

Notably, Disney's representatives in India and Reliance spokespersons have refrained from commenting on the matter, maintaining silence regarding the ongoing negotiations.

It's essential to recognize that this potential acquisition comes on the heels of significant moves by Reliance Industries. Their JioCinema platform secured the streaming rights for the highly acclaimed Indian Premier League (IPL) cricket tournament in 2022 at a staggering cost of $2.7 billion.

This strategic move underlines the growing influence of Asia's wealthiest individual, Mukesh Ambani, in the Indian entertainment industry, especially after he televised the IPL tournament for free this year.

Subsequently, Reliance secured another significant victory when it clinched a multi-year deal to broadcast HBO shows from Warner Bros Discovery Inc. in India. Previously, these shows were exclusively available on Disney's platforms in the country.

Despite encountering challenges such as subscriber losses, Disney Star remains proactive, exploring investments and alternative strategies. In a July report by a News agency, it was revealed that the company's India streaming platform garnered a record-breaking 43 million views during the Men's Cricket World Cup 2023 match between India and New Zealand.

This viewership figure exceeded the 35 million viewers for the much-anticipated India-Pakistan match earlier in the same month.

Facts about the potential acquisition of Disney's India operations by Reliance Industries:

• The deal is reportedly worth $10 billion, making it one of the largest media and entertainment deals in Indian history.

• Reliance is valuing Disney Star at between $7 billion and $8 billion, while Disney is looking for a valuation closer to $10 billion.

• The two companies are discussing the possibility of merging some of Reliance's media units, such as JioCinema and Viacom18, into Disney Star.

• The deal is expected to be announced next month, but it is still subject to regulatory approval.

• If the deal goes through, Reliance will become the majority stakeholder in Disney Star, India's leading media and entertainment company.

• This would give Reliance a dominant position in the Indian media and entertainment industry, and could have a significant impact on consumers and content producers alike.

Here are some additional latest facts:

• Reliance has been aggressively expanding its media and entertainment business in recent years. In 2022, the company acquired the streaming rights to the Indian Premier League (IPL) for $2.7 billion.

• Disney has been struggling to turn a profit in India. In July, a Bloomberg News report said that Disney Star was looking at making investments and considering other options.

• Disney Star's India streaming platform garnered a record 43 million views on Sunday for the men's Cricket World Cup 2023 match between India and New Zealand. This number surpassed the 35 million viewers for the much anticipated India-Pakistan match earlier this month.

The potential acquisition of Disney's India operations by Reliance Industries is a major development in the Indian media and entertainment industry. It will be interesting to see how the deal unfolds and how it impacts the market in the long term.