Advertisement

Updated December 26th, 2023 at 18:39 IST

Reliance Industries gains on report of signing non-term sheet with Walt Disney

Shares of RIL’s media arm Network18 media and Investments surged as much as 7 per cent to hit an intraday high of Rs 92.25.

Business Desk
Reliance Industries
The deal is likely to be completed by February, with Reliance aiming to finish the process by the end of January. | Image:Republic
Advertisement

Reliance Industries Ltd (RIL) shares surged 0.59 per cent to hit an intraday high of Rs 2,580 after the country’s most valuable private sector corporation and Walt Disney Co. inked a non-binding term sheet last week.

Shares of RIL’s media arm Network18 media and Investments surged as much as 7 per cent to hit an intraday high of Rs 92.25.

Advertisement

RIL and Walt Disney have inked a non-binding term sheet to merge their media operations in India under which the former will own 51 percent through a combination of shares and cash, while Disney will hold 49 percent stake, as per media reports.

The merger in favour of the Fortune 500 firm is expected to be finalised after finishing all regulatory approvals, and commercial ratifications by February 2024, although RIL is keen to wrap it up by the end of January.

Advertisement

As part of the non-binding term sheet, Mukesh Ambani-owned Viacom18 will establish a step-down subsidiary absorbing a significant portion of Star India's stock, according to media reports.

Currently, multiple TV channels and the JioCinema streaming app function under RIL's media and entertainment unit Viacom18. The proposed deal would see a unit under Viacom18 taking control of Star India through a stock swap.

Advertisement

The merger could enable both parties to establish one of India's largest entertainment household names, giving competition to the likes of Sony and Zee Entertainment.

The parties involved are reportedly planning to invest $1 billion to $1.5 billion in the business.

Advertisement

As on 9: 51 am, the RIL shares were trading 0.40 per cent higher at Rs 2,575.

Advertisement

Published December 26th, 2023 at 10:12 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Whatsapp logo