Disney To Forge Multibillion Deal with Reliance Industries; Details Here

Mukesh Ambani's Reliance Industries Ltd. is all set to finalise a multibillion-dollar agreement with Walt Disney Co. to acquire its India operations, according to sources as reported by Bloomberg on Monday.

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Following the transaction, RIL is anticipated to hold a controlling stake in the Disney Star business, which is estimated to be valued at approximately $10 billion. The U.S. entertainment conglomerate will retain a minority stake in the venture. Reliance assesses the assets to be in the range of $7 billion to $8 billion, sources were quoted as saying by Bloomberg.

Both companies are anticipated to announce the significant acquisition next month. Additionally, the deal might also involve the merger of some of Reliance's media units with Disney Star.

Up to this point, there hasn't been a unanimous agreement regarding the deal or the assessed value of the stakes being transferred. As per the proposal, Disney is anticipated to retain a minority stake in the Indian company following the cash and stock exchange transaction's conclusion. According to the news report, Disney might opt to retain the assets for an extended period.

The acquisition of shares in Disney India highlights Ambani's expanding presence in India's entertainment sector. Following the successful IPL deal, Reliance's Jio Cinema platform decided to offer free broadcasting of the immensely popular domestic cricket tournament this year.

Earlier this year, Reliance secured a separate multi-year agreement to air HBO shows from Warner Bros Discovery Inc. in India, content that was previously under Disney's purview.

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Even in the face of setbacks within India's entertainment industry, Disney Star has persevered in its commitment to investing in the market. According to a July report by Bloomberg News, the company has been considering various alternatives for its business, such as a potential sale or the establishment of a joint venture.