Walt
Disney
and
Reliance Industries
have signed a binding pact to merge their
media operations
in India, according to people familiar with the matter, as the US entertainment giant recasts its strategy amid intense competition in the country.
The media unit of Reliance, controlled by billionaire Mukesh Ambani, and its affiliates are expected to own at least 61% in the merged entity, with Disney holding the rest, the people said, asking not to be identified as the information is not public.
The latest milestone, along with other details, are likely to be announced early this week, the people said. A Disney representative declined to comment. A Reliance spokesperson didn't respond to a query on the signing of the binding pact.
The stake split between the partners may change, depending on how Disney's other local assets are factored in by the time the deal is closed, the people said. Disney owns a minority stake in broadcast service provider, Tata Play, which Reliance may consider acquiring, according to local news reports.
Disney has been grappling with challenges in India such as retaining subscribers and securing coveted media assets, while Reliance has cornered a larger slice of the local media and entertainment businesses in recent years. Together, they would make a formidable media behemoth in one of the world's fastest-growing markets.
English (US) ·