Reliance Industries Ltd, owned by Mukesh Ambani, is set to finalize a multi billion dollar deal with Walt Disney Co. to acquire its Indian operations, according to Bloomberg, which cited sources. Hot Star and Star Sports will move to Reliance Jio as per this deal.
The deal will result in RIL holding a controlling stake in the Disney Star business, which has an estimated valuation of $10 billion. The company will end up with a minority stake owned by the US entertainment giant. According to those familiar with the situation, Reliance estimates the assets to be between $7 billion and $8 billion.
Next month, the companies are expected to declare this considerable acquisition. According to sources, the deal may lead to a merger between some of Reliance’s media units and Disney Star, and Hot Star and Star Sports will move to Reliance Jio as per this deal.
Until this point, there has been no agreement on the deal or the valuation of the stake transfer. Disney is expected to hold onto a minority stake in the Indian company after the cash and stock swap transaction is completed, according to the proposal. As per the news report, Disney can keep assets longer.
Disney’s representative in India did not respond to a request for comment, and Reliance’s spokesperson declined to comment.
Ambani secured the agreement to stream the Indian Premier League for $2.7 billion in 2022 earlier. The acquisition of stakes in Disney India reveals Ambani’s growing influence in India’s entertainment industry. After securing the IPL deal, Reliance’s Jio Cinema platform decided to broadcast the highly popular domestic cricket tournament without cost this year.
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