vault disney And Reliance Industries has signed a binding agreement for its merger media operations In India, the US entertainment giant has reworked its strategy amid intense competition in the country, according to people familiar with the matter.
Reliance’s media unit, controlled by billionaire Mukesh Ambani, and its affiliates are expected to hold at least a 61% stake in the merged entity, with the rest held by Disney, the people said, asking not to be identified because the information is not public.
The latest milestone, along with other details, are likely to be announced as early as this week, the people said. A Disney representative declined to comment. A Reliance spokesperson did not respond to questions about the signing of the binding agreement.
The stake split between the partners could change depending on how Disney’s other local properties are handled by the time the deal closes, the people said. According to local news reports, Disney owns a minority stake in broadcast services provider, Tata Play, which Reliance may consider acquiring.
Disney has grappled with challenges such as retaining customers and securing iconic media properties in India, while Reliance has cornered a large share of local media and entertainment businesses in recent years. Together, they will become a powerful media giant in one of the world’s fastest growing markets.
Reliance’s media unit, controlled by billionaire Mukesh Ambani, and its affiliates are expected to hold at least a 61% stake in the merged entity, with the rest held by Disney, the people said, asking not to be identified because the information is not public.
The latest milestone, along with other details, are likely to be announced as early as this week, the people said. A Disney representative declined to comment. A Reliance spokesperson did not respond to questions about the signing of the binding agreement.
The stake split between the partners could change depending on how Disney’s other local properties are handled by the time the deal closes, the people said. According to local news reports, Disney owns a minority stake in broadcast services provider, Tata Play, which Reliance may consider acquiring.
Disney has grappled with challenges such as retaining customers and securing iconic media properties in India, while Reliance has cornered a large share of local media and entertainment businesses in recent years. Together, they will become a powerful media giant in one of the world’s fastest growing markets.
