Disney and Reliance Industries Appoint Law Firms and Start Antitrust Due Diligence Regarding Merger

Following the news that Disney and Reliance Industries would merge their Indian operations, both companies have appointed law firms and started antitrust due diligence, according to Yahoo Finance.

What’s Happening:

  • Reliance has appointed Indian law firm Khaitan & Co and Shardul Amarchand Mangaldas, while Disney has roped in AZB & Partners.
  • The appointments are the latest sign of progress as Reliance and Disney, which each have a major streaming service as well as 120 television channels between them, look at merging into an entity to create an entertainment superpower in the world's most populous nation.
  • Under the terms of the merger, Indian billionaire Mukesh Ambani’s Reliance group would own 51% of the merged entity through a combination of shares and cash, while Disney would hold the remaining 49% of shares.
  • The merger deal is expected to be completed by February, even though Reliance is said to be hoping to wrap it up in late January.
  • Disney acquired Star India as part of its acquisition of 20th Century Fox in 2019.
  • At the time, Star India was considered one of Fox’s crown jewels, and it was an important part of Disney’s plan to build out its streaming business globally.
  • The deal gave Disney the broadcast and streaming rights for increasingly popular Indian Premier League cricket matches as well as dozens of TV channels in several languages and a stake in a production company that makes Bollywood movies.
  • Following the loss of a bidding war over rights to the aforementioned cricket matches, Hotstar is expected to lose 8 million to 10 million subscribers in its fiscal third quarter.
  • At the time, Disney agreed to pay $3 billion to retain the rights to broadcast the IPL on its Star India television network through 2027.
Luke Manning
Luke is a fan of all things theme parks and self-proclaimed #1 fan of Joffrey’s Coffee, who lives in Kissimmee, FL