Disney had been looking for suitable buyers for its digital and TV businesses in the country, and in October a report said the US-based entertainment company may be bought by Reliance Industries. According to a new development, the Mukesh Ambani-led company and Walt Disney are set to finalize details of a non-binding term sheet to merge their Indian media operations.
Citing executives involved in the deal, The Economic Times reported that under the terms of the deal, a newly formed unit of Reliance’s Viacom18 could acquire Disney’s Star India through a share swap deal. It added that the deal may be announced in January.
Reliance is likely to pay a 51% stake in the proposed Viacom18 unit in cash, while Disney owns 49%, the report said, stressing that the new entity’s board is expected to have equal representation from both parties.
“It is a merger, not a takeover, but not with equal shares. Both sides will use equity rather than one buying out the other for cash. Even the junior shareholder will have rights,” one of the people was quoted as saying.
Disney+ Hotstar India Review
Reliance’s streaming platform JioCinema is set to value Disney’s India assets, which include streaming service Disney+ Hotstar and Star India. It was reportedly valued at between $7 billion and $8 billion, but Disney valued the operation at $10 billion.
Meanwhile, the report also said that the two sides are also negotiating a business plan to provide cash as an immediate capital investment, which could amount to $1 billion to $1.5 billion. The final shareholding structure of the company is likely to become clear based on a cash injection from both parties.
Other players in battle
In October, it was reported that private equity firm Blackstone had held preliminary talks with Walt Disney to acquire a stake in the company’s India business, and Disney was even in talks with billionaires Gautam Adani and Sun TV Network owner Kalanithi Maran.
Disney’s difficult India business
The talks of Disney selling its Indian business came after the platform witnessed an accelerated subscriber exit after the company lost streaming rights to some key cricket tournaments, such as the Indian Premier League and the national cricket team’s bilateral matches with JioCinema.
Disney wanted to revive the successes of its streaming business in India by offering free cricket on smartphones during the ICC Men’s Cricket World Cup 2023 tournament.
Citing executives involved in the deal, The Economic Times reported that under the terms of the deal, a newly formed unit of Reliance’s Viacom18 could acquire Disney’s Star India through a share swap deal. It added that the deal may be announced in January.
Reliance is likely to pay a 51% stake in the proposed Viacom18 unit in cash, while Disney owns 49%, the report said, stressing that the new entity’s board is expected to have equal representation from both parties.
“It is a merger, not a takeover, but not with equal shares. Both sides will use equity rather than one buying out the other for cash. Even the junior shareholder will have rights,” one of the people was quoted as saying.
Disney+ Hotstar India Review
Reliance’s streaming platform JioCinema is set to value Disney’s India assets, which include streaming service Disney+ Hotstar and Star India. It was reportedly valued at between $7 billion and $8 billion, but Disney valued the operation at $10 billion.
Meanwhile, the report also said that the two sides are also negotiating a business plan to provide cash as an immediate capital investment, which could amount to $1 billion to $1.5 billion. The final shareholding structure of the company is likely to become clear based on a cash injection from both parties.
Other players in battle
In October, it was reported that private equity firm Blackstone had held preliminary talks with Walt Disney to acquire a stake in the company’s India business, and Disney was even in talks with billionaires Gautam Adani and Sun TV Network owner Kalanithi Maran.
Disney’s difficult India business
The talks of Disney selling its Indian business came after the platform witnessed an accelerated subscriber exit after the company lost streaming rights to some key cricket tournaments, such as the Indian Premier League and the national cricket team’s bilateral matches with JioCinema.
Disney wanted to revive the successes of its streaming business in India by offering free cricket on smartphones during the ICC Men’s Cricket World Cup 2023 tournament.
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