Reliance Industries and Walt Disney are set to merge their Indian media operations, according to a media report. The merger will see Reliance possessing 51 per cent ownership via shares and cash and Disney holding the remaining 49 per cent, the report adds.

A non-binding term sheet has been signed, setting the stage for what could be one of the country’s largest entertainment conglomerates.

This arrangement will bolster the control of Mukesh Ambani’s Reliance Group over the new entity, the report notes.

The merger has the potential to create one of India’s largest entertainment empires, competing with TV giants like Zee Entertainment and Sony and streaming services like Netflix and Amazon Prime.

Reliance has been aggressively competing with Disney, particularly by offering free streaming of the popular Indian Premier League (IPL) cricket matches, which previously bolstered subscribers’ numbers for Disney’s Hotstar app.

Reliance operates numerous TV channels and JioCinema streaming app via its media and entertainment unit Viacom18. The proposed deal will see a unit under Reliance’s Viacom18 taking control of Star India through a stock swap, according to the report.

The parties are reportedly planning to invest $1 billion to $1.5 billion in the business. According to the report, the board may consist of an equal number of directors from Reliance and Disney and is considering having at least two independent directors.