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India entertainment industry set for wave of mergers as US media giants and local MNCs invest to expand content
- Reliance Industries and Walt Disney are reportedly partnering to invest up to US$1.5 billion to merge their Indian media operations
- The news comes after the announced Zee-Sony Pictures deal as analysts predict further shakeups in the industry
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Home to Bollywood films and premier cricket league matches, India’s media and entertainment industry is set for a major shake-up with up to two mega-corporate mergers next year that could spark a wave of other consolidations.
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Expectations have reached a fever pitch in the industry after India’s most valuable company, Reliance Industries, and The Walt Disney Company signed a non-binding agreement to merge their Indian media operations, according to a report by The Economic Times on Monday. The two companies are expected to invest up to US$1.5 billion, the report said, without indicating if it is the total investment sum.
Indian billionaire Mukesh Ambani’s Reliance group would own 51 per cent while Disney would hold the remaining 49 per cent of the combined entity, the report added.
If the deal were to be finalised by early next year, it would create an entertainment behemoth with a reach spanning India and abroad, analysts say. Lawyers, however, say that the size of the potential deal could invite antitrust scrutiny.
The reported Reliance-Disney union comes as India’s Zee Entertainment Enterprises Ltd and Sony Pictures Networks are set to complete their US$10 billion deal to merge their Indian media operations by the middle or late next year.
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