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Walt Disney Co. (NYSE:DIS) and Reliance Industries Ltd. signed a binding agreement for a merger of their media operations in India.
The media unit of Reliance, which is controlled by billionaire Mukesh Ambani, and its affiliates will own at least 61% of the combined entity, according to a Bloomberg report on Sunday, which cited people familiar with the matter.
The latest update on the deal is expected to be announced earlier this week, according to the report. The stake split could still change depending on how Disney’s other local assets are factored in by the time the deal is closed.
A Disney (DIS) representative declined to comment to Bloomberg and Reliance spokesperson didn’t immediately respond to request for comment.
Disney’s (DIS) Indian operations have reportedly suffered significant losses over the past year due to the loss of streaming rights to air cricket matches.
Media reports in the last month indicate that Disney’s preliminary deal to sell majority control of its Indian business to Reliance Industries is at a sharply lower valuation than when it was acquired. The deal reportedly values the operation at $3.9B; when Disney acquired it via its $71.3B Fox media assets buyout in 2019, the unit was valued somewhere between $7B and $16B.
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