Reliance to sign INR 19800 crore merger pact with Disney, to own 61% stake in India cricket's key streaming partner

Mukesh Ambani, the titan at the helm of Reliance Industries, has added another feather to his cap as he continues to redefine the business landscape, with Reliance Industries boasting a staggering market cap of over INR 2,021,000 crore.

A Bloomberg report suggests that Ambani's Reliance has inked a deal with Walt Disney Co., signaling a merger of their media operations in India. This strategic collaboration, valued at over INR 19,800 crore, positions Ambani to potentially become the proprietor of India's largest media empire. It is worth noting that Disney had previously agreed to sell 60% of its India business to Viacom 18, a venture-backed by Ambani, at a whopping valuation of INR 33,000 crore.

With a keen eye on dominating the media landscape, Reliance Industries is reportedly set to inject INR 12,451 crore into the mega media entity. What does this mean for the likes of Netflix and Amazon Prime? Well, as the dust settles, they might find the competition heating up, especially against Jio Cinema, armed with its potential low-cost plans.

Sources indicate that post-merger, Jio may roll out budget-friendly add-on plans bundled with Jio recharges, catering to both telecom and OTT users. As Ambani's brainchild takes significant strides in the media realm, it is evident that the competitive landscape is undergoing a seismic shift.

Having previously secured IPL rights, Jio Cinema became a formidable contender against Disney+Hotstar. The merger accentuates the competitive losses faced by Hotstar, which, despite hosting IPL and FIFA World Cup, witnessed a dip in subscribers.

In essence, Ambani's foray into the media landscape, combined with the Disney merger, marks a paradigm shift, leaving industry giants recalibrating their strategies to stay afloat in the dynamic market.