Indian billionaire Mukesh Ambani's Reliance Industries Limited and Walt Disney Co DIS are reportedly advancing in their discussions to merge their Indian media and entertainment divisions by beginning an antitrust due diligence.
Reliance has engaged Indian law firm Khaitan & Co and Shardul Amarchand Mangaldas for the merger's legalities, while Disney has partnered with AZB & Partners, reported Reuters.
The appointments signal significant progress in the negotiations, which include a major streaming service and a total of 120 television channels between the two companies, the report noted.
The report indicates that senior executives from Disney's Burbank headquarters and top officials from Reliance in Mumbai met in London recently and have signed a non-binding term sheet, marking a crucial step towards the merger. Reliance is expected to hold a majority stake in the merged entity.
Related: Disney In Talks With Mukesh Ambani's Reliance For Mega Indian Media Merger
The potential merger is likely to face antitrust challenges and intense scrutiny, as per the report.
If successful, this deal would reportedly mark the second significant change in India's TV and streaming industry, following the proposed merger of Japan's Sony Group Corp SONY with India's Zee Entertainment.
Disney's Indian business has faced stiff competition from Reliance, particularly in streaming the Indian Premier League cricket tournament.
Price Action: DIS shares are trading lower by 1.30% at $90.46 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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