Reliance, Disney Engage Legal Teams & Begin Antitrust Due Diligence For Indian Media Merger: Report
Portfolio Pulse from Shivani Kumaresan
Reliance Industries Limited and Walt Disney Co (NYSE:DIS) are progressing in talks to merge their Indian media and entertainment divisions, with both companies engaging legal firms for antitrust due diligence. The discussions involve a major streaming service and 120 TV channels. A non-binding term sheet has been signed, and Reliance is expected to hold a majority in the merged entity. The deal, which may face antitrust challenges, follows a similar proposed merger between Sony Group Corp (NYSE:SONY) and Zee Entertainment in India. Disney's Indian business has been competing with Reliance, especially in streaming the Indian Premier League cricket. DIS shares dropped 1.30% to $90.46.
January 04, 2024 | 4:52 pm
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NEUTRAL IMPACT
Sony Group Corp (NYSE:SONY) is mentioned in the context of a proposed merger with Zee Entertainment in India, which is part of the broader consolidation in the Indian media industry.
Sony is mentioned as a comparator in the industry, undergoing a similar merger process with Zee Entertainment. While the news does not directly impact Sony, it highlights the competitive landscape in which Sony operates in India. The relevance is moderate as the article does not focus on Sony, and the importance is moderate due to the indirect impact of market consolidation on Sony's strategy.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEGATIVE IMPACT
Disney is in advanced talks with Reliance Industries to merge their Indian media divisions, which could face antitrust scrutiny. DIS shares fell 1.30% to $90.46.
The news of the merger and the initiation of antitrust due diligence suggest a significant corporate action that could impact Disney's operations in a major emerging market. The short-term stock price drop indicates market concerns over potential regulatory challenges. The impact is considered important due to the scale of the merger and its implications for Disney's international strategy.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80