Reliance Industries Ltd (RIL) is reportedly close to striking a multibillion-dollar cash and stock deal to acquire a controlling stake in Walt Disney’s India operations.
The US entertainment giant has been exploring options for its television business in India that had included an outright sale or a joint venture since July.
The options which Disney was reportedly looking at earlier included acquisition of its entire India business or a combination of its assets comprising of sports rights and streaming service Disney+ Hotstar.
As per Bloomberg, the US major will hold on to a minority stake in the domestic company after the potential transaction. The report said that no final decision has been made on the deal or the valuation, and Disney could still decide to hold on to the assets for a longer period.
“Disney values the business at around $10 billion, as opposed to piecemeal transactions weighed earlier, the people said, asking not to be named because the discussions are private. Reliance views the assets at around $7 billion to $8 billion,” Bloomberg reported, quoting informed sources close to the developments.
The giant acquisition is expected to be declared by the companies next month. There is also a possibility of merger of a few Reliance’s media units with Disney Star as per the deal, the business news wire further reported.
For Reliance, any potential deal will boost Viacom18 which is a joint venture with Paramount Global. One of the main focus areas for Viacom18 has been in sports where it has built a strong portfolio, including highly popular properties.
According to RIL’s annual report for 2022-23, this includes digital streaming rights for IPL (2023-27 seasons), Women Premier League (2023-2027), international cricket matches in South Africa (2024-2031), and SA20 (South Africa’s T20 league, 2023-2032). It also has brands like CNBC TV18, News18, Colors, MoneyControl and MTV, among others under its belt.
For the record, Viacom18 is a joint venture between controlling stakeholder Network18 Group (a subsidiary of Reliance Industries since 2014), James Murdoch and Uday Shankar backed Bodhi Tree Systems and Paramount (formerly Viacom) Networks EMEAA.
As per the latest information, while Bodhi holds 15.97% stake in Viacom18, Paramount’s stakeholding is around 10%.
