• Home
  • Cricket News
  • Reliance And Disney In Talks For Mega Media Merger To Reshape Indian Entertainment Landscape

Reliance and Disney in Talks for Mega Media Merger to Reshape Indian Entertainment Landscape

image-lq2ludcoImage - X.com

Mukesh Ambani's Reliance Industries (RIL) is in advanced talks with Walt Disney Co. for a game-changing merger of their Indian media operations. This strategic manoeuver seeks to reshape the Indian media scene, reinforcing Reliance's standing in the industry. The discussions underscore a deliberate move to establish a powerful presence in the dynamic Indian media sector.

According to insiders, the discussions centre around the absorption of Disney's Star India into a newly formed unit of Reliance's Viacom18 through a share swap deal in January. Under the proposed arrangement, Reliance is poised to acquire a 51% stake in the Viacom18 unit by cash payment, while Disney will retain a 49% stake. This move not only reflects Reliance's commitment to strengthening its foothold in the Indian media market but also signifies a collaborative governance structure with equal representation on the unit's board from both entities.



The estimated valuation of Disney's India assets, including the popular Disney Hotstar streaming service and Star India, has been a subject of debate. Bloomberg values them at $7 billion to $8 billion, while Disney places them at $10 billion. The merger discussions are seen as a strategic injection of equity, emphasizing a merger with unequal shareholding rather than an outright purchase.

Behind the scenes, key players instrumental in these negotiations include Justin Warbrooke, chief financial officer (CFO) of the direct-to-consumer business, and international head of business operations, along with Kevin Mayer, a former Disney executive. Mayer, brought back in July as an adviser, had previously run Candle, a media group co-founded with Blackstone's backing.

Handling negotiations for Reliance is Mukesh Ambani's key adviser, Manoj Modi, along with the group's mergers and acquisitions team. The collaborative efforts of these key figures underscore the significance of this potential merger in the Indian media landscape.