Mukesh Ambani, the country’s richest man and owner of Reliance Industries, has grabbed the biggest deal in the entertainment world. After the completion of this deal, Reliance will become India’s largest entertainment company.
A non-binding agreement has been signed between Reliance and Walt Disney. Under this, 51 per cent of Walt Disney’s Indian business will be owned by Reliance. After both companies are merged, the country’s largest entertainment company will be born.
Reliance-Disney Will Be The Country’s Largest Entertainment Company
According to Reuters and ET’s reports, this biggest entertainment business merger can be completed by February 2024. It was told in the report that Mukesh Ambani-owned Reliance would get a 51 per cent stake in it, and Disney would own 49 per cent. Both cash and stocks are involved in this merger. With its completion, Reliance-Disney will become the biggest entertainment company in the country. Reuters had reported two weeks ago that officials of both companies would meet in London to discuss the deal.
Concerns Of Amazon Prime, Netflix, Zee and Sony Will Increase
The merger of RIL and Walt Disney will give direct competition to Zee Network, Sony TV, Amazon Prime and Netflix. RIL’s Jio is present in the media and entertainment sector with many apps and Viacom18.
There Was Competition Between Jio Cinema and Disney Hotstar
Jio Cinema has also been included in this merger. It has the online rights of IPL (Indian Premier League). Earlier, these rights were with Disney Hotstar. In this sector, Ambani was facing competition only from Disney. Since the online rights of IPL went away, the number of users of Disney Hotstar started decreasing.
Disney Wanted To Sell Indian Business
According to the report, from January 2023 onwards, Disney tried to sell its Indian business or make an Indian company a partner for the joint venture. Disney also has many TV channels and Hotstar streaming platforms. After the merger, both companies can invest between 1 to 1.5 billion dollars together.
Announcement May Happen Next Month
This merger can be announced early next month. Under the proposal, Disney will retain a minority stake in the Indian company after completing any cash and stock swap transaction.
