Reliance Disney Merger / Reliance signs agreement with Disney - will get this percentage of stake

Reliance Disney Merger: Mukesh Ambani-led Reliance has signed a non-binding agreement for the merger of its Indian media business with Walt Disney. News agency Reuters, quoting ET sources, has said that this merger can be completed by February 2024. This is considered to be the biggest merger ever in the Indian media business. It was reported in the report that Mukesh Ambani led Reliance will get 51 percent stake in this merger. Disney will get the remaining 49 percent. Cash and stocks are included in the merger.

Zee and Sony will face competition

After this merger, RIL and Walt Disney will become India's largest media company. Its direct competition will be with Zee-Sony, Amazon Prime and Netflix. Currently, RIL is present in the media and entertainment sector with several apps including Viacom18. Jio Cinema has also been included in this merger, which has the rights to broadcast IPL online.

There will be investment of up to 1.5 billion dollars

The report said that since the beginning of January this year, Disney was looking for an Indian partner to sell its Indian business or for a joint venture. Disney also has a streaming platform called Hotstar along with many TV channels. After the merger, both the parties together can invest 1 to 1.5 billion dollars.

Reliance Industries and Walt Disney Company signed a non-binding agreement in London last week. This means that officials of Reliance Industries and Disney will now sit together and hold final round of talks to acquire Disney's Star India business. The valuation of Disney's Star India business will be determined, however, if a final deal is not reached, either party may back out.

This step of Mukesh Ambani can also be called taking a lesson from the Twitter deal. When Elon Musk made the deal to buy Twitter, he made a binding pact. In such a situation, when Elon Musk later backed out from the deal, Twitter went to court against him. In such a situation, Elon Musk had to complete the deal to buy Twitter.

Disney+Hotstar will become Jio+Hotstar

If the talks between Mukesh Ambani and Disney reach a firm deal, then it is possible that Disney + Hotstar may become Jio + Hotstar by February. According to ET news, Reliance Industries may hold 51% stake in the new company, while Star India may retain 49% stake. Whereas in India it may exit its television and OTT business. If everything goes well, then by the end of January these talks can be completed and the final deal of the merger can be completed. However, both the companies have not given any official statement in this regard.

Reliance Industries is already in the media and entertainment sector in India. He has Viacom 18. In such a situation, this deal with Disney is going to happen when the India business of 'Zee Entertainment' and 'Sony Group' is going to be merged in the country, which is stuck for 2 years. This is the biggest media merger in the country so far. Gautam Adani has also entered the media and news business.

Will become the largest media company

After the deal between Reliance Industries and Disney, it will be one of the largest media companies in the country. It will have a total of 115 TV channels and 2 OTT platforms. Currently, Star India has 77 channels and Viacom 18 has 38 channels.

Announcement may happen next month

The merger could be announced as early as next month. Under the proposal, Disney would likely continue to hold a minority stake in the Indian company after the completion of any cash and stock swap transaction.