Reliance Industries Ltd is reportedly on the brink of securing a significant stake in Walt Disney Co.'s India business through a cash and stock transaction.
According to sources cited in a Bloomberg report, the US-based entertainment giant, Walt Disney, is contemplating the sale of a controlling interest in its Disney Star business, a move that is estimated to be valued at approximately $10 billion. People familiar with the matter have informed the publication that Reliance assesses the worth of the company's assets to be in the range of $7 billion to $8 billion.
An official announcement regarding this acquisition is anticipated to be made in the following month, which will also involve the amalgamation of some of Reliance's media divisions with Disney Star. Walt Disney has been exploring options for the sale or formation of a joint venture concerning its streaming and television business in India for several months. This move also encompasses Disney Star's valuable streaming platform, Disney+ Hotstar.
The proposed arrangement implies that Disney would maintain a minority interest in its Indian business. However, it is important to note that a definitive decision on the deal's terms and valuation is yet to be reached, according to the report. There is also a possibility that Disney might choose to retain its assets for a while longer.
If the deal materializes, it will provide a significant boost to Reliance, spearheaded by Mukesh Ambani, which has been aggressively expanding its presence in the Indian OTT market via its JioCinema platform. In 2022, Disney+ Hotstar lost the streaming rights for the Indian Premier League (IPL), a highly popular sporting event in India, to JioCinema. Furthermore, JioCinema secured the media rights for the FIFA World Cup 2022 and various domestic matches involving Indian cricket and football teams, which were previously held by Disney+ Hotstar.
Notably, Disney+ Hotstar experienced some impact on its subscriber numbers following these events. Nonetheless, the platform recently achieved a milestone with thirty-five million concurrent viewers during the India-Pakistan World Cup match earlier this month, surpassing JioCinema's previous record. Additionally, the digital streaming platform attracted a record-breaking forty-three million viewers during the men's Cricket World Cup 2023 match between India and New Zealand. It is worth mentioning that, following in JioCinema's footsteps, the OTT platform owned by Disney Star also decided to provide free mobile streaming of the Asia Cup and World Cup 2023 cricket matches.
