Reliance Industries And Disney Sign Pact to amalgamate their media operations in India
Walt Disney Co. and Reliance Industries Ltd. have reportedly entered into a binding agreement to amalgamate their media operations in India, sources familiar with the matter revealed. This strategic move by the US entertainment giant comes in response to heightened competition in the densely populated nation.
Under the terms of the agreement, the media division of Reliance, overseen by billionaire Mukesh Ambani, and its affiliated entities are anticipated to possess a minimum stake of 61% in the consolidated entity. Meanwhile, Disney is set to hold the remaining stake. The insiders providing this information requested anonymity as the details have not been officially disclosed.
This collaboration marks a significant shift in Disney’s approach as it navigates the competitive landscape in India, the world’s most populous country. The partnership with Reliance Industries aligns with Disney’s strategic realignment in response to the evolving dynamics of the Indian media market.
According to reports, Disney is currently contending with challenges in India, encompassing subscriber retention and the acquisition of sought-after media assets. In contrast, Reliance Industries has successfully garnered a larger share of the local media and entertainment sectors in recent years. The two conglomerates, by merging their operations, would potentially create a formidable media powerhouse in one of the world’s rapidly expanding entertainment markets.
Reliance, helmed by billionaire Mukesh Ambani, outbid Disney in 2022 to secure streaming rights for the Indian Premier League (IPL) cricket tournament. Additionally, in April, the conglomerate secured a multi-year agreement to broadcast HBO shows from Warner Bros Discovery Inc., previously held by Disney.
Since July of the previous year, Disney has been actively exploring various options for its India business, contemplating scenarios such as an outright sale or the establishment of a joint venture with potential partners. As the media landscape undergoes transformations, Disney’s strategic decisions in the Indian market are closely watched, and the collaboration with Reliance marks a pivotal move in this dynamic landscape.
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