NEW DELHI: Billionaire Mukesh Ambani’s Reliance is close to merging its India media business with Walt Disney with a 51% to 54% stake, a deal that values the US giant’s Indian operations at just US$3.5bil, say three sources with direct knowledge.
The valuation of Disney’s India unit is sharply lower than the US$15bil to US$16bil estimated when Disney acquired Fox in 2017.
Its TV and streaming business in India has struggled over the years, with its digital platform especially facing a user exodus in stiff competition over cricket streaming with Ambani’s plaforms.
The deal will strengthen Reliance’s hold over India’s US$28bil media and entertainment market, especially after a separate US$10bil merger deal between Japan’s Sony and India’s Zee Entertainment collapsed last week.
The three sources said Bodhi Tree, a joint venture between James Murdoch and a former Disney executive, Uday Shankar, is also in talks to take a stake of around 9% in the new merged entity. Disney will hold around 40%. Reliance, Disney and Bodhi Tree did not immediately respond to requests for comment. — Reuters
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