Mukesh Ambani’s Reliance Industries is on the verge of sealing a multi-billion dollar agreement with Walt Disney Company, as reported by Bloomberg, to acquire Disney’s operations in India.
Following the completion of this deal, Reliance is expected to gain a majority stake in Disney’s Indian operations under the brand “Disney Star,” with an estimated valuation of a whopping $10 billion. Disney, on the other hand, will maintain a minority stake in the venture.
According to insiders who chose to remain anonymous due to the private nature of the discussions, there seems to be a valuation gap between the two conglomerates. Disney values the business at approximately $10 billion, while Reliance sees the assets as being worth between $7 billion to $8 billion, Bloomberg reported.
This colossal acquisition is anticipated to be formally announced by the companies next month. Additionally, there is a potential merger on the horizon involving some of Reliance’s media divisions with Disney Star, as suggested by Bloomberg‘s sources.
Up to this point, the two parties have yet to reach a consensus on the deal’s specific terms and valuation. However, it is likely that Disney will continue to hold a minority stake in the Indian company post-completion, following a cash and stock swap transaction. There is even the possibility that Disney may opt to retain ownership of some assets for a while.
Mukesh Ambani, the force behind Reliance Industries, has been making substantial inroads into the entertainment sector. In 2022, he secured the rights to stream the Indian Premier League for a staggering $2.7 billion. This recent acquisition of Disney India’s stakes underscores Ambani’s growing influence in India’s entertainment landscape. Notably, Reliance’s JioCinema platform offered free coverage of the immensely popular domestic cricket tournament this year after securing the IPL deal.
Earlier this year, Reliance also inked a multi-year agreement to broadcast HBO shows from Warner Bros. Discovery in India, content that was previously under Disney’s umbrella.
Despite facing challenges in India’s entertainment sector, Disney Star continued to invest in the market. They had been exploring various options for their Indian business, including an outright sale or the establishment of a joint venture, as reported by Bloomberg News in July.
Disney’s presence in India remained substantial, as evidenced by the record-breaking viewership of the 2023 Men’s Cricket World Cup match between India and New Zealand, which attracted a staggering 43 million viewers. This figure notably exceeded the 35 million viewers who tuned in for the highly anticipated India-Pakistan grudge match earlier this month.
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