Economy
Reliance Closing In On Deal To Acquire Disney's Indian Operations: Report
Bhuvan Krishna
Oct 23, 2023, 06:51 PM | Updated 06:51 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Reliance Industries Limited, under the stewardship of Mukesh Ambani, is on the verge of clinching a cash and stock transaction to acquire Disney's Indian operations, according to a report in The Economic Times.
The American entertainment behemoth appears poised to divest a controlling interest in its Disney Star venture, appraising it at approximately $10 billion, thus deviating from the previously contemplated piecemeal dispositions, said the report quoting sources.
However, Reliance assesses the assets to be within the range of $7 billion to $8 billion, according to the same report.
The official announcement of this acquisition could emerge as early as the following month, featuring the integration of certain media units within Reliance into Disney Star, as indicated by these sources, who refrained from divulging further specifics.
According to the proposed arrangement, Disney is expected to retain a minority stake in the Indian entity subsequent to the execution of the cash and stock exchange agreement.
Nevertheless, the definitive decision on the transaction and its valuation remains pending, with Disney potentially opting to retain the assets for a longer period.
While Disney's representative in India is yet to respond to requests for comments, Reliance's spokesperson has chosen not to comment on the matter.
These ongoing discussions underscore Mukesh Ambani's transformative influence on India's entertainment industry.
This impact became notably evident when Reliance secured the streaming rights to the Indian Premier League for a substantial $2.7 billion in 2022.
Subsequently, the billionaire's JioCinema platform made the strategic decision to broadcast the immensely popular domestic cricket tournament for free earlier this year.
Furthermore, Reliance achieved another significant victory by securing a multi-year agreement to broadcast HBO shows from Warner Bros Discovery Inc in India — a portfolio that was previously under Disney's purview.
Despite Disney Star grappling with declining subscriber figures, the media conglomerate has not relinquished its position in the market and has remained committed to investments.
In July, Bloomberg News reported on Disney contemplating various alternatives for its Indian business, including an outright divestiture or the establishment of a joint venture.
Nonetheless, Disney's Indian streaming platform demonstrated its prowess by attracting a record 43 million viewers for the men's Cricket World Cup 2023 match between India and New Zealand, surpassing the 35 million viewership recorded during the highly anticipated India-Pakistan clash earlier in the month.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Bhuvan Krishna is Staff Writer at Swarajya.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.