Reliance and Disney sign binding pact for merger; deal likely to close this week: Reports

Walt Disney Company and Reliance Industries have signed a binding agreement to merge Viacom18 and Star India, as per media reports. 

Quoting sources, the media reports further stated that the deal is expected to be announced early this week. 

In December 2023, both the companies had signed  a non-binding term sheet in London.

The current strategy involves establishing a subsidiary under RIL's Viacom18 to facilitate the incorporation of Star India through a stock exchange arrangement.

In this agreement, Disney will maintain a 40% ownership stake, while Reliance and Bodhi Tree Systems, founded by James Murdoch and former Disney India head Uday Shankar, respectively, will possess 51% and 9% ownership, respectively.

The distribution of stakes among the parties could fluctuate based on the inclusion of Disney's additional local assets at the time of finalising the deal.

The deal will have a significant impact on the Indian M&E space, as it will create one big media giant after the Sony-Zee merger fallout.

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