Disney and Reliance, led by Mukesh Ambani, ink a new agreement for a megamerger in February 2024.

Under the terms of the new agreement, Disney will own 49% of the shares in the Indian media company, while Reliance will own 51%.

The two corporations have signed a non-binding term sheet, paving the way for a merger of their Indian media businesses, according to a report published in The Economic Times on Monday. Unnamed sources are cited in the paper, and Reliance Industries has not yet responded to rumors of a merger with Disney India.

There are two major participants in the planned merger: In order to take up a sizable chunk of Star India’s equity, Reliance-owned Viacom18 will create a step-down subsidiary, opening the door for a 51%–49% share distribution. Accordingly, Reliance would hold 51% of the Indian media company’s shares after the merger, while Disney would hold 49%.

This merger package is also expected to include Reliance’s Jio Cinema. The agreement calls for continuing to be a major stakeholder in the combined company and even forking over cash for the majority of the shares.

By February 2024, a significant media and entertainment merger in India is anticipated to wrap up what began with the signing of the term sheet in the UK last week. This might completely change how people watch and stream content in the nation. Even though everyone is keen to close the deal by January, it is anticipated that all regulatory clearances and commercial ratifications won’t be finished until February.

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This was not an overnight deal. After months of talks, the non-binding agreement was purportedly signed in London. Former Disney executive Kevin Mayer and close aide to Reliance Industries CEO Mukesh Ambani, Manoj Modi, were present.

This proposed union is huge for individuals in the sector. An acquisition of this magnitude would establish one of the biggest entertainment conglomerates in India, putting it on level with the major players of today, like Zee Entertainment, Sony, Netflix, and Amazon Prime.

The $10 billion merger between Zee Entertainment Enterprises and the local division of Sony Group Corp. remains uncertain while we wait for additional details regarding the Disney-Reliance agreement. The acquisition, which was first disclosed two years ago, has not yet received the final approval.