Reliance-Disney signed binding pact: RIL will have 61% stake in the merged media unit.

Reliance Industries Limited (RIL) and Walt Disney Co have signed a binding pact to merge their media operations in India. Bloomberg has given this information in one of its reports on Sunday.

Reliance will have 61% stake in the merged unit.

As per the deal, Reliance and its partners are expected to hold at least 61% stake in the media unit of the merged entity, while the remaining stake will be held by Disney.

Deal will be announced early this week

According to the report, the share distribution among the partners may change. It depends on how Disney’s other local assets are incorporated by the time the deal closes. The deal is likely to be announced early this week.

The Wall Street Journal had reported earlier this month that Disney had agreed to sell 60% of its India business to Viacom-18. This deal is being seen as an important step in the Indian media and entertainment industry after the Zee-Sony deal fell apart last month.

Deal will be done at valuation of ₹33,000 crore

Disney agreed to sell 60% of its India business to Viacom18 at a valuation of $3.9 billion (Rs 33,000 crore). Viacom 18 is owned by Reliance Chairman Mukesh Ambani.

In October last year, Reliance was valuing Disney’s India assets. Which includes Disney + Hotstar streaming service and Star India, whose valuation ranges from $ 7 billion to $ 8 billion. Whereas Disney had estimated the value of these operations at 10 billion dollars.

Disney and Viacom preparing to acquire ad rights in IPL

Last month, it was reported that Disney Star and Viacom-18 were preparing to acquire advertising rights in the upcoming Indian Premier League (IPL) 2024.

Disney Star, which will telecast IPL matches on its sports channels, The Economic Times reported. It was demanding Rs 167 crore and Rs 83 crore for co-presenting and associate sponsorship on the standard definition (SD) channel.