Disney and Reliance Move One Step Closer to a Merger in India
The Walt Disney Company and Mukesh Ambani’s Reliance Industries are moving closer to completing a merger that will reshape the Indian entertainment industry.
The two sides have now appointed a law firm and started antitrust due diligence, sources familiar with the matter said.
Disney+ Hotstar. Photo:amplitude.com
The appointment of law firms is the next step in what will likely be a long process. When merged, the new media entity would own two major streaming services and over 120 linear television channels.
A Potential Merger Was Reported Last Month
Last month, it was reported that Disney and Reliance had agreed to a merger that would see Ambani’s company wind up with the majority stake.
Initially, the two sides disagreed on which party’s entertainment unit was more valuable.
REUTERS/Shailesh Andrade
With Disney+ Hotstar still bleeding customers after losing the streaming rights to the Indian Premier League Cricket (IPL), Disney has been looking for ways to reshape its India business.
Photo: Forbes
By joining Reliance, the company will retain a foothold in India while mitigating some of the risks.
A Merger Will Be Looked at Closely By Regulators
Any merger between Disney and Reliance, however, is expected to face regulatory scrutiny.
According to Reuters, a key area of antitrust scrutiny would be the merged companies streaming businesses and their monopoly on advertising during cricket.
Photo: BBC
Disney still owns the rights to International Cricket Council matches in India, while Reliance has the former Disney-owned IPL rights.
Photo: Hindustan Times
While there will likely need to be some legal maneuvering done to get a merger passed, the two sides are heading in the right direction.
