What We Know About The $8.5 Billion Disney Merger With Reliance In India (original) (raw)

Topline

Disney announced it would merge its India operations with the country’s largest conglomerate, billionaire Mukesh Ambani’s Reliance Industries, in a $8.5 billion deal that will create one of the world’s largest media ventures—and signals a small retreat from the India market by Disney.

The merger will serve more than 750 million viewers in India—and signals a retreat for Disney.

SOPA Images/LightRocket via Getty Images

Key Facts

The deal merges Disney’s Star India with Reliance-controlled Viacom18—and will feature at least 98 channels across the two streaming platforms while granting a license for more than 30,000 Disney content assets, according to a release from Disney.

The Mumbai-based conglomerate will control the joint media venture and hold about a 16% stake in the merger, and Viacom18 (another Reliance venture) will hold 46%, leaving Disney with 37%.

Ambani’s wife, Nita, will serve as chairperson.

The merger is expected to be completed by either the last quarter of 2024 or the first of 2025.

Observers interpreted the move as an end to Disney’s grand expansion plans in India, after the media giant “proved no match for the homegrown hero” in Reliance (New York Times) and a way to “keep a small foothold in a market in which it once had much higher hopes” (Axios).

Forbes Valuation

We estimate Ambani, who is the richest person in Asia, to be worth $113.8 billion. Reliance Industries, a company that has interests in petrochemicals, retail and telecommunications, was founded by Ambani’s father in 1996.

Big Number

More than 750 million. That’s how many viewers the joint venture is anticipated to have across the country, according to the release.

Tangent

In January, Sony Group Corporation called off a $10 billion merger deal between Zee Entertainment Enterprises and Sony Pictures Networks India.

Key Background

Disney acquired Star India in 2019 after acquiring 21st Century Fox, its parent company, for $71 billion. The Burbank, California-based entertainment giant has since struggled with its India business, especially after losing the rights to stream the Indian Premier League in 2022 to Reliance. It began seeking a sale of its India-based assets last July, according to Reuters. In October, Bloomberg reported Disney was in preliminary discussions with Indian billionaires Kalanithi Maran and Gautam Adani for the sale of its India-based assets, after previously reporting that Ambani was also in talks with the entertainment giant.