Reliance Industries Ltd., led by Mukesh Ambani, is close to finalizing a multi-billion dollar agreement with Walt Disney Co. to purchase Disney’s operations in India. After this deal, Reliance Industries is expected to have the majority control of the Disney Star business, which is estimated to be worth about $10 billion. Walt Disney Co. will still have a smaller share in the business, but there is a difference in the estimated value, with Reliance valuing the assets at around $7 to $8 billion. Both companies are likely to announce this significant acquisition next month, and there’s a chance of further consolidation if Reliance combines some of its media units with Disney Star.
About the deal:
The terms and value of the deal are not yet final. It’s expected that Disney will keep a minority share in the Indian company after the exchange of cash and stock. There’s also a possibility that Disney may keep the assets for a while. Currently, Disney’s representative in India has not responded to requests for comments, and a spokesperson from Reliance declined to comment.
Mukesh Ambani has been expanding his presence in the entertainment industry. Notably, Reliance acquired the streaming rights for the Indian Premier League for a massive $2.7 billion in 2022. Afterward, Ambani’s JioCinema platform streamed the popular domestic cricket tournament for free, causing a disruption in the market.
Reliance also secured a multi-year deal to broadcast HBO shows from Warner Bros Discovery Inc. in India, which were previously under Disney’s control. Despite Disney Star facing a decline in subscribers, the media group has continued to invest and explore various options for the business, including selling it or forming joint ventures.
Nonetheless, Disney’s streaming platform in India still attracted a record 43 million viewers for the men’s Cricket World Cup 2023 match between India and New Zealand, surpassing the 35 million viewership achieved during the highly anticipated India-Pakistan match earlier this month.
The upcoming deal with Reliance Industries underscores Mukesh Ambani’s significant impact on India’s entertainment industry and further strengthens his growing media empire.
