A potential deal between Disney and Reliance Industries is said to be in the works, as reported by Bloomberg News on Monday. According to sources familiar with the matter, this deal would involve Disney selling its India operations to Reliance Industries, a conglomerate controlled by Mukesh Ambani. This move is seen as a response to the impact of Reliance's successful streaming platform on Disney's business.
Disney is considering selling a significant stake in the Disney Star business, valuing it at approximately $10 billion, rather than pursuing individual transactions, according to Bloomberg's sources. However, Reliance has a different valuation in mind, placing the assets at a range of $7 billion to $8 billion.
The deal's official announcement could occur as early as next month, with Disney likely retaining a minority stake in the Indian business, as stated in the report. It's important to note that no final decision has been reached regarding the deal, including its valuation. There is still a possibility that Disney may choose to retain ownership of the assets.
Both Disney and Reliance have not yet provided comments in response to Reuters' requests for clarification.
Reliance's streaming platform, JioCinema, has posed increased competition for Disney's India streaming operations. Mukesh Ambani has promoted his streaming service by offering free access to the Indian Premier League cricket tournament, the digital rights of which were previously held by Disney. This strategic move has added further pressure to Disney's business in India.
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