India's biggest business group, Reliance Industries, and entertainment giant Walt Disney are teaming up. They're merging their TV and online media businesses in India to form a new company worth $8.5 billion, Reuters reports.
Reliance is set to invest $1.4 billion in this new venture, taking a majority stake of over 63%, with Disney owning the remaining shares.
This merger is a strategic move for Disney, aiming to stop the loss of subscribers from its struggling Indian streaming service and address the financial challenges from expensive cricket broadcast rights.
The deal values Disney's operations in India at around $3 billion, a significant decrease from the $15 billion valuation at the time of its acquisition through a deal with Fox in 2019.
The merged entity will include 120 television channels, two digital streaming platforms, and the broadcast rights to major cricket events, tapping into India's immense love for the sport.
The company is expected to reach over 750 million viewers in India and the global Indian community.
