Reliance Industries and Walt Disney have signed a non-binding term sheet to merge their Indian media operations, according to a newspaper report, which has cited sources without naming them. 

According to the report, Reliance-owned Viacom18 will establish a step-down subsidiary, absorbing a significant portion of Star India’s stock, resulting in a 51:49 per cent shareholding pattern. Reliance will own 51 per cent and Disney 49 per cent in the merged Indian media company, the report adds. 

Jio Cinema will also be included in the merger, with Reliance anticipated to retain a major stake and pay cash for controlling stock in the merged entity. 

After sealing the term sheet in the UK last week, Reliance and Disney are expected to finalise the significant entertainment and media merger in India by February 2024, impacting the country’s viewing and streaming landscape. 

Despite Reliance’s push to conclude the deal by January, the mega-merger is slated to undergo all commercial ratifications and regulatory approvals by February. 

According to the sources quoted, months of negotiations resulted in the non-binding agreement signed in London, attended by Kevin Mayer, a former Disney executive, and Manoj Modi, a trusted aide to Mukesh Ambani. 

A possible merger will create one of India’s biggest entertainment empires, setting it in competition with TV players like Zee Entertainment and Sony and streaming giants such as Netflix and Amazon Prime.