Disney, Reliance to create magic   

India (Commonwealth) _Walt Disney and Reliance Industries have inked a legally binding deal to combine their media operations in India. According to the source, Reliance Industries, helmed by Mukesh Ambani, is anticipated to own a 61% share in the combined company as Disney reevaluates its approach in India in the face of fierce competition. 
 
In response to rumors about the legally binding merger deal, Disney and Reliance officials chose not to comment. According to the article, if Disney’s new local assets are included at the time of transaction finalization, the partners’ share allocation may change. Disney owns a minority ownership in the broadcast service provider Tata Play Ltd., which Reliance Industries is also considering purchasing. 
 
As of right now, Disney and Temasek, a Singaporean investment corporation, possess the remaining shares of Tata Play, with Tata Sons holding the majority 50.2% of the shares. 
 
Beginnings of a massive media empire 
 
Following the merger’s conclusion, Disney and Reliance would become a strong and significant media conglomerate in one of the world’s fastest-growing entertainment markets. Reliance is reportedly investing $1.5 billion for its 61% share. 
 
Following a few pivotal years in which Reliance emerged as Disney’s direct rival in the over-the-top (OTT) market, the US entertainment behemoth’s fortunes began to decline. This is why the merger occurred. Despite fierce competition between the two titans, Mukesh Ambani’s team beat Disney in 2022 to obtain streaming rights for the Indian Premier League (IPL) cricket competition. 
 
In the same year, Reliance secured a multi-year contract with Warner Bros Discovery Inc. to transmit HBO series that were formerly owned by Disney. Disney was compelled, due to fierce competition, to provide free streaming of the ICC World Cup 2023 to Indian subscribers of its mobile application. 
 
One of the two major deals in the Indian media and entertainment sector is the Disney-Reliance merger. Disagreements over the direction of the newly combined media behemoth led to the painful end of Sony and Zee Entertainment Enterprises Ltd’s (ZEEL) merger plans last month. 
 
According to the source, media powerhouse Walt Disney and Mukesh Ambani’s Reliance Industries have inked a significant agreement for the massive media merger. Despite the lack of an official announcement from either party, the Economic Times reported that this week might see the formal announcement of the merger. The legally binding agreement states that Reliance’s media division would probably possess at least 61% of the combined corporate entity, with Disney holding the remaining shares, according to the article. 
 
Disney has agreed to sell RIL’s Viacom 18 its 61% ownership in its Indian media assets for an estimated price of Rs 33,000 crore. 
 
The news of the media merger breaks as the Ambani family is preparing for Anant Ambani, their younger son, to marry Radhika Merchant. According to an AFP story, Robert Iger, the CEO of Disney, will be hosted by RIL chairman on March 1 for his son’s wedding celebration in Jamnagar. 
 
A month after Sony canceled its agreement with Zee, news of a fresh media merger was released. The Japanese behemoth withdrew from the leadership position of the combined firm, walking away from what was reportedly the largest media deal India has ever seen. Zee refuted allegations on February 20 that it was attempting to resurrect the $10 billion media merger with Sony. Zee has referred to the rumors about merger resurrection as “factually inaccurate” in a regulatory filing. 
 
Sony filed for arbitration with the Singapore International Arbitration Centre (SIAC) after accusing Zee of breaking the terms of their merger agreement. Sony is requesting a termination payment of about ₹748.5 crore. In retaliation, Zee has petitioned the National Company Law Tribunal (NCLT) for an injunction compelling Sony Group to carry out the merger. Zee further pursued legal action to refute Sony Group’s ₹748.5 crore allegations.