Reliance Industries Ltd., led by Asia’s wealthiest tycoon, Mukesh Ambani, is reportedly nearing a significant cash and stock deal to acquire the Indian operations of Walt Disney Co. According to The Economic Times report, this potential acquisition involves the sale of a controlling stake in the Disney Star business, valued at approximately $10 billion, marking a substantial move in the Indian entertainment industry. While both companies have not officially confirmed the deal, anonymous sources familiar with the matter have disclosed key details.
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The report added that Reliance Industries is said to view the assets at a slightly lower valuation, estimating them to be between $7 billion to $8 billion. The acquisition, expected to be announced in the coming month, may involve integrating some of Reliance’s media units into Disney Star, although specific details remain undisclosed.
Under the proposed deal, it’s likely that Disney will retain a minority stake in the Indian entity even after the cash and stock transaction is finalized. However, no final decisions have been made regarding the deal or its valuation. Disney may still choose to retain its Indian assets for an extended period.
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According to the report, this potential acquisition showcases Mukesh Ambani’s ongoing impact on India’s entertainment landscape. Earlier, Reliance secured the streaming rights to the Indian Premier League for a staggering $2.7 billion in 2022.
Subsequently, Ambani’s JioCinema platform offered free broadcasts of the popular domestic cricket tournament, further cementing Reliance’s presence in the digital streaming space. Reliance further strengthened its position by acquiring the rights to broadcast HBO shows from Warner Bros Discovery Inc., a significant content shift from Disney.
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Despite Disney Star facing challenges related to declining subscriber numbers, the media group remained engaged in the Indian market and explored various strategic options. This included the consideration of an outright sale or the establishment of a joint venture. Disney’s streaming platform in India managed to attract a record-breaking 43 million viewers during the 2023 Men’s Cricket World Cup match between India and New Zealand, demonstrating that Disney continues to wield influence in the Indian market.
