As per Report, “Reliance and Disney agree to merge media Businesses”

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Reliance’s media company and its affiliates will own at least 61% of the combined entity, with Disney holding the remaining shares. As per the Bloomberg report, Walt Disney Co. and Reliance Industries Limited have entered into a combined contract in the entertainment segment to merge their media operations in India.

At a valuation of $3.9 billion (Rs. 33,000 crore), Disney has agreed to sell 61% of its business to Viacom 18. The chairman of Reliance Industries Limited (RIL), Mukesh Ambani, owns Viacom 18.

Earlier this month, Disney decided to sell 60% of its Indian business to Viacom 18, as per the report. This initiative has a crucial impact on the entertainment industry and the Indian media.

Last month, Sony of Japan cancelled its merger with Zee Entertainment because of disagreements over the proposed merged media entity’s leadership.

In late November, Disney appointed two new directors—former Sky Group CEO Sir Jeremy Darroch and Morgan Stanley CEO James Gormon—in response to activist shareholder Nelson Peltz’s criticism of poor succession planning.

In November, during an earnings call, Disney CEO Iger stated that the business was “considering options” but would like to continue in India to ‘’improve the bottom line and strengthen our hand. Disney has entered India for the third time. The first was formed in 1993 through a partnership with KK Modi’s Group. Later, it invested in Ronnie Screwvala’s UTV, but that didn’t go as per the plan.

In 2022, investor enthusiasm for Disney’s India Business started depleting after the company lost the online rights to stream the popular IPL competition from 2023 to 2027, despite successfully winning the broadcast TV rights.

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