For their proposed merger of Indian media and entertainment, Walt Disney and Reliance Industries, owned by Indian billionaire Mukesh Ambani, have chosen legal firms and begun antitrust due diligence. Disney has recruited AZB & Partners, while Reliance has appointed Khaitan & Co. and Shardul Amarchand Mangaldas. Strong scrutiny and antitrust concerns are anticipated for the transaction.
According to four people familiar with the situation, Indian billionaire Mukesh Ambani‘s Reliance Industries and Walt Disney have chosen legal firms and begun their antitrust due diligence for their proposed merger of Indian media and entertainment.
Disney has enlisted AZB & Partners, while Reliance has named Indian legal firms Khaitan & Co. and Shardul Amarchand Mangaldas, according to the people.
The appointments are the most recent indication of development as Reliance and Disney, who together own 120 television stations and a sizable streaming service, consider joining forces to form an entertainment powerhouse in the most populated country in the world. It is anticipated that Ambani’s gang will own the majority of the company.
Top Reliance officials from Mumbai and senior Disney executives from Burbank headquarters traveled to London in late December, according to a fifth source, and they signed a non-binding term sheet on the deal.
Reliance did not respond to questions from Reuters, while Disney declined to comment. In addition to Khaitan and Shardul declining to comment, AZB did not immediately reply to questions from Reuters.
According to Reuters, any potential merger between Disney and Reliance would probably encounter antitrust issues and a close examination. To allay worries about their combined market dominance, assets like TV networks would probably be sold up.
According to three people with knowledge of the Reliance-Disney merger due diligence, the antitrust review’s work is just getting started.
Should a deal be reached between Disney and Reliance, it would be the second to alter the TV and streaming scene in India, since Sony of Japan also intends to combine its operations in India with Zee Entertainment of India.
Disney’s operations in India have been beset by difficulties as a result of Ambani’s aggressive dispute with the American corporation over the free broadcasting of the Indian Premier League cricket (IPL) competition, the digital rights to which Disney originally held.
According to antitrust experts who spoke with Reuters, a major area of antitrust scrutiny for a Disney-Reliance combination would be their streaming companies and their control over advertising during cricket.
The rights to International Cricket Council matches in India belong to the Disney Hotstar app until 2027, whereas the rights to the Indian Premier League belong to Reliance’s JioCinema app.
According to Reuters, corporate leaders have not reached a consensus on whether the entertainment division of Reliance or Disney is more valuable during the early stages of negotiations.
