Reliance Industries, controlled by Asia’s richest tycoon Mukesh Ambani, is nearing a cash and stock deal to buy Walt Disney’s India operations, according to people familiar with the matter.
The US entertainment giant may sell a controlling stake in the Disney Star business, which it values at around $10 billion (nearly Rs. 83,100 crore), 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 between $7 billion (nearly Rs. 58,150 crore) to $8 billion (nearly Rs. 66,470 crore), some of the people said.
The acquisition could be announced as early as next month with some of Reliance’s media units merged into Disney Star, the people said, without providing further details.
Under the proposal, Disney will likely continue to hold on to a minority stake in the Indian company after any cash and stock swap transaction is completed, the people said. No final decision has been made on the deal or the valuation, and Disney could still decide to hold onto the assets for a bit longer, they added.
Reliance “evaluates various opportunities on an ongoing basis” and will make necessary disclosures as required, a spokesperson for the company said in an emailed reply. A representative for Disney in India didn’t respond to a request for comment.
The deal talks are illustrative of Ambani’s disruption of India’s entertainment industry after he scooped up the streaming rights to the Indian Premier League for $2.7 billion (nearly Rs. 22,430 crore) in 2022. The billionaire’s JioCinema platform then chose to broadcast the hugely popular domestic cricket tournament for free earlier this year.
