Disney and Reliance Reportedly Sign Binding Pact for India Media Merger

Disney and Reliance Industries Ltd. have reportedly agreed to merge their media operations in India, according to sources familiar with the matter. Under the deal, Reliance’s media unit and its affiliates are anticipated to hold a minimum of 61% stake in the combined entity, with Disney retaining the remainder. The finalized terms, including stake distribution, are expected to be officially announced early this week.

Neither Disney nor Reliance representatives have provided comments on the reported agreement at this time. However, sources suggest that the stake distribution could be subject to change, particularly considering Disney’s existing local assets, such as its minority stake in Tata Play Ltd., which Reliance may be interested in acquiring.

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This collaboration comes amidst challenges faced by Disney in India, including subscriber retention and competition for media assets, while Reliance has significantly expanded its presence in the local media and entertainment sectors. Together, they would form a formidable force in one of the world’s fastest-growing entertainment markets.

In recent years, Reliance has secured significant media rights, including streaming rights for the Indian Premier League (IPL) cricket tournament, outbidding Disney in 2022. Additionally, Reliance secured a multi-year agreement to broadcast HBO shows from Warner Bros Discovery Inc., which were previously under Disney’s purview.

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Disney’s streaming service, Disney+ Hotstar, garnered substantial viewership during the Cricket World Cup in October and November. However, it chose to stream the matches for free in India as a strategy to regain subscribers, even at the expense of revenue. In contrast, Reliance had previously streamed IPL matches without charge in 2023, attracting a large audience.

Disney has been exploring various options for its India operations since July, including a potential sale or forming joint ventures with local partners. This merger is part of broader consolidation efforts within the Indian media and entertainment industry, following the recent collapse of the planned merger between Sony Group Corp.’s local unit and Zee Entertainment Enterprises Ltd. due to leadership disagreements.