Mumbai-based multinational conglom Reliance Industries is gearing up to buy a majority stake in Disney’s operations in India.

According to a new Bloomberg report, the Mukesh Ambani-led company has assessed the related assets at between US$7 billion and US$8 billion. This would peg the total value of Disney India at around US$10 billion. If finalized, the sale could be announced as early as next month. 

Bloomberg’s report adds that the proposed deal would see Disney continue to hold a minority stake after any “cash and stock swap transaction” is completed. But sources have reiterated that nothing is set in stone since the House of Mouse has yet to make a final decision on the deal or the valuation. 

Over the summer, reports emerged that Disney planned to either sell off its Indian operation or find a joint-venture partner. This coincided with CEO Bob Iger stating in July that Disney was rethinking its linear strategy and could potentially be open to selling off TV assets, such as ABC.

Reliance is involved in numerous businesses, including petrochemical, telecommunications, oil refining and media. Its streaming service, JioCinema, competes directly with Disney’s Hotstar platform (pictured). 

After JioCinema acquired streaming rights to the Indian Premier League cricket matches from Disney, the House of Mouse saw a significant decline in its subscriber base in the region. According to the company’s Q3 report from August, Hotstar lost more than 12 million subscribers in the quarter—representing a 24% decline from Q2.

JioCinema has also inked content deals with NBCUniversal and Warner Bros. Discovery this year to bolster its catalogue with more international content, including popular kids titles like the Harry Potter films, Puss In Boots: The Last Wish and The Super Mario Bros. Movie. 

Despite the stiff competition, Disney has continued its efforts to build up viewership in India, with some promising results as of late. The ICC World Cup 2023 match between India and New Zealand broke an OTT viewership record with Hotstar attracting 43 million concurrent viewers—beating the previous record of 35 million, held by the India and Pakistan match in the same tournament.

Image courtesy of Neetu via PixaHive