Walt Disney and Reliance Industries have reportedly signed a binding pact to merge their India operations, according to sources. The US entertainment company has been looking for a strategy to realign amid intense competition in the country. Disney has also been grappling with challenges in India, such as retaining subscribers and securing coveted media assets while Reliance has cornered a larger slice of the local media and entertainment businesses in recent years.
If sources are to be believed, Mukesh Ambani’s Reliance and its affiliates will own at least 61% in the merged entity while Disney will own the balance. The stake split between the partners may change, depending on how Disney’s other local assets are factored in by the time the deal is closed. The sources also said that Reliance may consider acquiring broadcast service provider Tata Play in which Disney owns a minority stake.