Disney to enter into multibillion dollar India deal with Ambani's Reliance
Reliance Industries Ltd., is all set to finalise a multibillion dollar deal with Walt Disney Co. to by its India operations, reported Bloomberg citing sources on Monday. After the deal, the RIL is expected to enjoy a controlling stake in the Disney Star business, which as an estimated valuation of $10 billion.
The US entertainment giant will end up holding minority stake in the business. Reliance views the assets at between $7 billion to $8 billion, people familiar with the matter told Bloomberg. Also read: Mukesh Ambani’s youngest son, Anant, faces proxy firms’ pushback on board seat The giant acqusition is expected to be declared by the companies next month.
There is also a possibility of merger if a few Reliance's media units with Disney Star as per the deal, reported BB referring to sources. Also Read: Mukesh Ambani’s luxury real estate bet gets HSBC financing boost Till now, there has been no consensus on the deal or the valuation of the transfer of stakes. Under the proposal, Disney is likely to continue hold on to a minority stake in the Indian company after the completion of cash and stock swap transaction.
According to the news report, Disney could chose to hold onto assets for a bit longer. Also Read: Reliance Industries to announce Q2 result on October 27 A Disney representative in India didn't respond to a request for comment and a spokesperson for Reliance declined to comment. Ambani bagged the deal to stream the Indian Premier League for $2.7 billion in 2022.
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