Back Disney to enter into multibillion dollar India deal with Ambani’s Reliance

Bloomberg reported on Monday that sources said Mukesh Ambani’s Reliance Industries Ltd. was close to finalizing a multibillion-dollar deal with Walt Disney Co. to buy its India operations.

As a result of the transaction, RIL will own a majority share in the Disney Star company, which is valued at around $10 billion. The American media conglomerate will have a minority investment in the company. People familiar with the case told Bloomberg that Reliance values the assets between $7 billion and $8 billion.

It is anticipated that the firms will make the announcement of the massive acquisition next month. According to BB’s sources, as part of the agreement, a combination between certain of Reliance’s media units and Disney Star is also possible.

There is currently no agreement on the terms of the deal or the value of the shares being transferred. After the cash and equity swap is finalized, Disney will likely maintain a minority position in the Indian company as proposed. The news article claims that Disney has the option of delaying the sale of some properties.

Neither the Indian Disney representative nor the Reliance spokeswoman responded to our requests for comment.

Ambani’s growing empire in entertainment industry

In 2022, Ambani will earn $2.7 billion from a streaming rights deal for the Indian Premier League. Ambani’s expanding impact in India’s entertainment business is highlighted by his acquisition of interests in Disney India. Reliance’s Jio Cinema platform decided to air the immensely popular domestic cricket event for free this year after sealing a contract with the Indian Premier League.

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This year, Reliance also secured a multi-year deal to air HBO programming from Warner Bros. Discovery Inc. in India. Those shows had previously been broadcast by Disney.

Disney Star has lost money in India’s entertainment industry but has kept investing there. Bloomberg News reported in July that it was considering other alternatives for the company, such as an outright sale or the formation of a joint venture.

Disney’s success in India kept rising. The highly anticipated India-Pakistan grudge match this month drew just 35 million viewers, while the recent men’s Cricket World Cup 2023 match between India and New Zealand attracted a record 43 million viewers.

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