Reliance Industries, led by Mukesh Ambani, is reportedly on the verge of finalizing a major multi-billion dollar agreement with Walt Disney Co. to acquire Disney’s operations in India, as disclosed by insiders to Bloomberg. Following the deal’s conclusion, Reliance is anticipated to hold a controlling interest in Disney Star, which has an estimated valuation of around $10 billion. Disney, on the other hand, will retain a minority stake in the venture.
![Reliance Will Soon Control & Own Disney+Hotstar In India: Disney+Hotstar India Valued At Rs 84,000 Crore?](https://trak.in/stories/wp-content/uploads/2023/10/ify-5-1.png)
Valuation Discrepancies and Merging Prospects in Disney-Reliance Deal
The valuation of this potential deal has been a point of contention. Disney values the business at approximately $10 billion, while Reliance assesses the assets at a somewhat lower $7 billion to $8 billion. Although there is still no consensus on the terms, it is expected that the companies will officially announce the acquisition in the coming month.
Sources also suggest the possibility of merging some of Reliance’s media divisions with Disney Star as part of the arrangement. Under the proposed agreement, Disney is likely to retain a minority stake in the Indian company, possibly holding on to assets for a while.
As of now, neither a Disney representative in India nor a spokesperson for Reliance has commented on these developments.
Mukesh Ambani’s Reliance: A Dominant Force in India’s Entertainment Industry
This acquisition marks another significant step in Mukesh Ambani’s expansion into the entertainment industry. Reliance secured the rights to stream the Indian Premier League for a staggering $2.7 billion in 2022. The acquisition of stakes in Disney India underscores Ambani’s growing influence in India’s entertainment sector, especially after securing exclusive rights to broadcast the popular domestic cricket tournament, the IPL, for free this year.
Reliance also recently secured a multi-year deal to broadcast HBO shows from Warner Bros Discovery Inc. in India, content that was previously held by Disney.
While Disney Star faced challenges and losses in the Indian entertainment market, it continued to invest in the region. The recent Men’s Cricket World Cup 2023 match between India and New Zealand achieved a record-breaking 43 million viewers, surpassing the 35 million viewership of the highly anticipated India-Pakistan cricket match held earlier in the same month. Disney’s commitment to India remains evident, even as it explores various options for its business in the country.