Disney Star & Reliance to finalise merger this week?
Disney Star and Reliance Industries (RIL) are reportedly in the last phase of their negotiations ahead of a merger to create India’s biggest media and entertainment powerhouse.
Reports say that the RIL is expected to invest $1.5 billion cash in the newly formed entity. However, the projected value has significantly dropped with Disney’s initial $10 billion estimate, down to $4.5 billion. The valuation is lower than expected due to Disney’s Indian assets, and loss of content on Disney+ Hotstar.
The new merged entity is likely to see Disney hold 40% share, while Reliance will have 51% and Bodhi Tree System will have 9%.
The merger will doubt face regulatory hurdles and concerns about market competitiveness.
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The deal between the two parties will reportedly be complete by 17th February.
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