Reliance Industries Merge With The Walt Disney Company In India

  • Posted On:February 29, 2024

Reliance industries is led by Asia's richest man, Mukesh Ambani, who will inject $1.4 billion in the merged entity, with the company and its affiliates holding a more than 63% stake, with Disney owning the rest, the companies announced in a joint statement.

 Together, the Reliance-Disney merged entity will have 12o TV channels and two streaming platforms, plus TV and streaming cricket rights for key tournaments in a country with an immensely large following for the sport.

 Jinesh Joshi, an analyst at India's Prabhudas Lilladher said: "The combined entity will create a sports behemoth in India." Continuing with "This merger will give Reliance great bargaining power when it comes to negotiating advertisement contracts ... For Disney, coming together with a bigger player, in terms of (financial) pockets, will give it a cash cushion."

 “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company. Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content,” said Bob Iger, CEO of The Walt Disney Company.

 “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance group,” said Mukesh D. Ambani, chair and MD of Reliance Industries.

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