Jio Cinema and Disney Plus Hotstar all set to MergeBollywood News

December 26, 2023 07:46
Jio Cinema and Disney Plus Hotstar all set to Merge

(Image source from: Businesstoday.in)

Reliance Industries Ltd and Walt Disney Co. have taken a significant stride towards asserting their dominance in the entertainment industry in India. According to The Economic Times, the two companies signed a non-binding agreement in London last week, propelling them closer to their highly anticipated mega-merger. This merger, expected to be finalized in February 2024, will have a profound impact on the country's viewing and streaming experience.

While Reliance pushes for an expedited completion by January, all commercial and regulatory approvals are projected to be concluded by February. The negotiations between the two parties have been ongoing for several months, culminating in the signing of the agreement in London, in the presence of Kevin Mayer, a former Disney executive, and Manoj Modi, a trusted aide of Mukesh Ambani. As the Reliance-Disney Star deal progresses, the future of the $10 billion merger between Zee Entertainment Enterprises and Sony Group Corp.'s local unit remains uncertain.

However, the merger between ZEEL and Sony Group is still far from being finalized, prompting both parties to request an extension in order to make the final decisions. It is anticipated that the outcome of the merger will be determined by January 2024. As part of this significant merger, Viacom18, a company owned by Reliance, will establish a subsidiary that will absorb a substantial portion of Star India's stocks. This will result in a 51-49 per cent distribution of shares between the two companies. Additionally, Jio Cinema will be included in the agreement.

Reliance is expected to maintain a significant stake in the merged company, while RIL is likely to pay cash for the controlling stocks in the newly formed entity. Furthermore, this merger is anticipated to provide a boost to Disney's OTT app, Disney+ Hotstar, which is currently experiencing significant financial losses.

A crucial aspect that would be subject to regulatory scrutiny in a potential Disney-Reliance merger is their streaming businesses and their influence over advertising during the cricket season. This is expected to bring about changes in the way cricket is viewed in India.

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