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Walt Disney Co. (NYSE: DIS) and Reliance Industries Ltd. have signed a binding agreement to merge their media businesses in India.
Reliance’s media unit, controlled by billionaire Mukesh Ambani, and its affiliates will hold at least 61% stake combined entity, according to a Bloomberg report Sunday, citing people familiar with the matter.
According to the report, the latest update on the deal is expected to be announced early this week. The share split could still change depending on how Disney’s other local businesses are taken into account when the deal closes.
A Disney (DIS) representative declined to comment to Bloomberg, and a Reliance spokesperson did not immediately respond to a 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 aired cricket matches.
Media reports over the past month indicate that Disney’s preliminary agreement to sell majority control of its Indian operations to Reliance Industries is at a sharply lower valuation than when it was acquired. The deal reportedly values the operation at $3.9 billion; When Disney acquired it through its $71.3 billion acquisition of Fox media assets in 2019, the unit was valued at between $7 billion and $16 billion.