Reliance Industries and Walt Disney have initiated antitrust due diligence for their planned merger in India’s media and entertainment sector, as per sources familiar with the matter. Reliance engaged Khaitan & Co and Shardul Amarchand Mangaldas, while Disney enlisted AZB & Partners for this process.
According to sources, this move signifies progress in their efforts to merge into an entertainment powerhouse in India. The planned entity, expected to be majority-owned by Reliance, combines the substantial streaming services and over 120 TV channels of both entities.
“Ambani’s group is expected to have a majority stake in the entity,” revealed sources.
In late December, senior executives from Disney’s Burbank headquarters and top Reliance officials from Mumbai reportedly met in London, signing a non-binding term sheet for the potential merger.
Reliance declined to comment, labeling the story as “speculative,” while Disney chose not to provide a statement. The law firms involved also refrained from commenting or did not respond to Reuters queries.
“If a deal was struck between Reliance and Disney, it would be the second to reshape India’s TV and streaming landscape,” reported Reuters. Experts anticipate potential antitrust challenges for this merger, especially concerning their streaming businesses and advertising power during cricket events.
“A key area of antitrust scrutiny would be their streaming businesses and their power over advertising during cricket,” stated antitrust experts.The valuation disparity between Disney and Reliance’s entertainment unit emerged during initial discussions among company executives, as per reports by Reuters.
