Reliance Industries Limited (RIL), led by Mukesh Ambani, and the Walt Disney Company have inked a binding agreement to merge their media operations in India, reported by Bloomberg on Sunday, citing individuals familiar with the matter.
According to the signed agreement, the media unit of Reliance Industries Limited (RIL) and its subsidiaries are expected to constitute a minimum of 61 per cent of the merged entity, while Disney will hold the remaining percentage. The agreement specifically pertains to the merger of Viacom18 Media Private Limited (a joint venture between TV18 and Viacom) and Star India (a media conglomerate owned by Disney India), as outlined in the report.
According to reports, Disney has reached an agreement to divest its 61 percent stake in its Indian business to Viacom18 at a valuation of Rs 33,000 crore (USD 3.9 Billion).
However, the report of the deal emerges against the backdrop of the high-profile gathering, as business magnate Mukesh Ambani prepares to host Disney Chief Robert Iger on March 1 for his son's wedding in Gujarat, India.
As per the report detailing the expected merger, the entertainment market in India, already one of the world's largest, is on the brink of witnessing a substantial consolidation. This merger is poised to give rise to a formidable entertainment powerhouse.
Nevertheless, neither of the involved entities has officially issued a statement regarding the reported deal.
Latest development precedes another merger tale in the entertainment industry - The Zee-Sony saga
In a turn of events, the recent development of another entertainment media occurs against the backdrop of the collapsed proposed merger between Sony Group-Culver Max Entertainment and Zee Entertainment last month. The dissolution of the merger was attributed to a disagreement over leadership roles within the combined company.
Adding a surprising twist and turns to the Zee-Sony merger, Zee Entertainment Limited (ZEEL) and Sony Group Corporation are reportedly back in discussions to resurrect their USD 10 billion merger, which was initially canceled two years ago.
Representatives from both entities have convened in Mumbai this month for the meetings with the aim of resolving differences and formalizing an agreement, according to reports.
