Reliance and Disney combine to create a $8.5 billion media conglomerate in India

Reliance Industries, a conglomerate based in India, and Walt Disney announced on Wednesday that their Indian television and streaming businesses will be merged.

With this purchase, the assets of the two firms are combined to form an entertainment behemoth valued at $8.5 billion, which creates new standards for the media environment in India.

As per the deal, Reliance, headed by Asia's wealthiest person, billionaire Mukesh Ambani, would provide $1.4 billion to the new enterprise. Over 63% of the ownership will be controlled by Reliance and its affiliates, with Disney holding about 37% of the market.

Disney is attempting to revive its streaming service in India, which has been hurt by dwindling subscriber numbers and financial difficulties, such as the high price of obtaining the rights to broadcast Indian cricket, with this strategic combination.

Disney's Indian businesses were valued at $15 billion when it was acquired through the Fox purchase in 2019, therefore the valuation through this merger marks a considerable decline from that amount.

In the lucrative $28 billion media and entertainment industry, Ambani will have a stronger competitive advantage over both domestic and international rivals like Sony, Zed Entertainment, and Netflix thanks to the partnership, which would create a media juggernaut with 120 television channels and two streaming platforms.

(Sources: investing.com, reuters.com)