Disney, Reliance ink pact to merge media business

 Walt Disney and Reliance Industries have signed a binding pact to merge their media operations in India, according to people familiar with the matter, as the US entertainment giant recasts its strategy amid intense competition in India.

RIL media arm and its affiliates will hold at least 61% in the new entity 

ANTO ANTONY, BALJU KALESH & P R SANJAI

 25 February 

Walt Disney and Reliance Industries have signed a binding pact to merge their media operations in India, said people familiar with the matter. The Reliance’s media unit, controlled by Mukesh Ambani, and its affiliates are expected to own at least 61 per cent in the merged entity, with Disney holding the rest, the people said, asking not to be identified as the information is not public.

      The latest milestone, along with other details, are likely to be announced early this week, the people said. 

     A Disney representative declined to comment. A Reliance spokesperson did not immediately respond to a query on the signing of the binding pact. The stake split between the partners may change, depending on how Disney’s other local assets are factored in by the time the deal is closed, the people said. Disney owns a minority stake in broadcast service provider Tata Play Ltd., which Reliance may consider acquiring, according to news reports. Disney has been grappling with challenges in India such as retaining subscribers and securing coveted media assets, while Reliance has cornered a larger slice of the local media and entertainment businesses in recent years. Together, they would make a formidable media behemoth in one of the world’s fastest-growing entertainment markets. 

Disney has been mulling options for its business, including an outright sale or setting up a joint venture with partners since July. This transaction is part of the larger consolidation efforts in the media and entertainment space. 

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