At least 61% of the combined company is anticipated to be owned by Disney, with the remaining shares held by the media division of Reliance, which is led by billionaire Mukesh Ambani and its affiliates.
Walt Disney’s anonymous sources
The persons, who wished to remain anonymous because the information is confidential, stated that Walt Disney will hold the remaining shares in the combined company, with the media division of Reliance, helmed by billionaire Mukesh Ambani, and its affiliates expected to acquire at least 61%.
The people claimed that the most recent milestone and further information will probably be revealed early this week. A Disney spokesman said they would not comment. When asked about the signing of the legally binding agreement, a Reliance representative did not answer right away. According to the people, the distribution of the partners’ stakes could alter based on how Disney’s other local holdings are taken into account by the time the acquisition closes.
Disney owns a minority share in broadcast service provider Tata Play Ltd., which Reliance may explore purchasing.
Media reports
According to media reports published in the past month, Disney is selling Reliance Industries the majority of its Indian business in a preliminary deal that values the company significantly less than when it was bought. The operation was reportedly valued between $7 billion and $16 billion when Disney acquired it in 2019 through its $71.3 billion buyout of Fox media holdings. The deal values the operation at $3.9 billion.
Disney is reportedly selling Reliance Industries most of its Indian operations in a preliminary deal that values the company far lower than when it was purchased, according to media reports that have been out in the last month. Walt Disney reportedly paid $71.3 billion for the firm in 2019 when it acquired Fox Media Holdings, valuing the company at between $7 billion and $16 billion. The operation is valued at $3.9 billion in the acquisition.
Retaliating Disney+ Hotstar, the streaming service, attracted a record number of viewers during the Cricket World Cup in October and November, despite the fact that the matches were free to watch in the cricket-mad country. An action intended to recover subscribers at any cost to income. Earlier in 2023, Reliance streamed free IPL matches, attracting large numbers of spectators.
Previous attempts
Since July, Walt Disney has been considering a number of possibilities for its India operations, such as an outright sale or the formation of a joint venture with partners. This deal is a component of the greater attempts at media and entertainment sector consolidation in India.
Sony Group Corp. had intended to combine its local division with Zee Entertainment Enterprises Ltd., but the deal was finally ruined last month due to disagreements over who would run the newly combined media behemoth.
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