Billionaire Mukesh Ambani-backed Reliance Industries has denied reports of it signing an agreement with Walt Disney to merge their media operations.

“We refer to your letter/email dated February 26, 2024 seeking clarification on the news item - Disney and Reliance said to have signed binding merger pact” and would like to clarify that we are unable to comment on media speculation and it would be inappropriate on our part to do so,” Reliance Industries said in a press release.

“We have made and will continue to make disclosures in compliance with our obligations under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and our agreements with the stock exchanges,” the company added.

Media reports suggested that Reliance Industries and Walt Disney have reportedly sealed a deal to merge their media operations, Viacom18 and Star, in India.

Under the agreement, Reliance was set to possess a minimum of 61 per cent stake in the combined entity, with Disney retaining the remaining share.

According to sources cited by Bloomberg, the formal announcement of the merger was anticipated to occur this week.

The distribution of ownership between the entities could potentially be subject to adjustments, contingent upon the inclusion of Disney's additional local assets at the deal's closure.

Moreover, Reliance is exploring the possibility of acquiring Disney's minority stake in Tata Play, a broadcast service provider.

The development follows a previous report by the Wall Street Journal, which indicated that Disney had consented to divest 60 per cent of its Indian operations to Viacom18, valuing the transaction at $3.9 billion.

As of 11:44 am, Reliance Industries shares traded 0.02 per cent higher at Rs 2,975, underperforming the Sensex which was up 0.2 per cent.