Mukesh Ambani’s Reliance Industries is reportedly planning to finalise a multi-billion dollar deal with Walt Disney Co. to buy its India operations.
According to a Bloomberg report, post-deal Reliance is expected to hold a controlling stake in the Disney Star business, which has an estimated valuation of $10 billion. The American entertainment giant will hold a minority stake in the business.
“Disney values the business at around $10 billion, as opposed to piecemeal transactions weighed earlier, the people said, in the identity of anonymity because the discussions are private. Reliance views the assets at around $7 billion to $8 billion,” Bloomberg reported quoting the close source aware of the matter.
The acquisition deal is expected to be declared by the companies next month. As per the reports, there is also a chance for merger of a few Reliance’s media units with Disney Star as per the deal.
Reportedly under the proposal, Disney is likely to continue holding on to a minority stake in the Indian company after the completion of cash and stock swap transaction.
Earlier this month, Reuters reported that Blackstone had held preliminary discussions with Walt Disney to acquire a stake in the Indian arm of the entertainment firm.
With subscriber exits accelerating, Disney has sought to revive the fortunes of its streaming business in India by offering free cricket on smartphones, expecting that the strategy will boost advertising revenue.
Disney’s India business, which comprises the Disney+ Hotstar streaming service and Star India has reportedly posted a loss of $41.5 million on revenue of $390 million for the year to March 2022.
Still, according to the company’s official statement, Disney’s India streaming platform managed to draw in a record 43 million viewers on Sunday for the men’s Cricket World Cup 2023 match between India and New Zealand. It was way higher than the 35 million viewership of the highly anticipated India-Pakistan grudge match held this month.
