Reliance is reportedly in the final stages of discussions with Walt Disney to merge its media businesses in India, where Reliance is expected to secure a controlling stake of 51%-54%, valuing Disney’s domestic business at $3.5 billion. Analysts had previously valued Disney’s India unit at $15-$16 billion during Disney’s acquisition of Fox in 2017. Additionally, Bodhi Tree, a joint venture between James Murdoch and former Disney executive Uday Shankar, is exploring a stake of around 9% in the merged entity.
While Reliance, Disney, and Bodhi Tree have not provided immediate responses, the proposed merger involves Viacom18, the broadcast division of Reliance Industries, combining forces with Disney India businesses. Viacom18’s shareholders, including Paramount Global and Bodhi Tree, may witness changes in the final percentage stake numbers. Despite India’s sizable population and growing income, Disney has faced challenges in monetizing its operations in the region. The streaming service’s Average Revenue Per User (ARPU) in India is significantly lower than in the U.S. and other international markets. The merger aims to create an entertainment powerhouse in India, leveraging the combined strengths of Reliance and Disney, who each operate streaming services and own 120 television channels collectively.
