Reliance shares jump after sealing mega media merger with Disney
Reliance shares emerged as the top gainer on the stock exchanges after its mega media merger deal with Disney.
In Short
- Reliance Industries shares rise after Disney merger announcement
- The merged entity to be valued at $8.5 billion
- Reliance top gainer on stock exchanges
Shares of Reliance Industries Limited (RIL) rose as much as 1.5 per cent in early trade after signing a binding agreement with Walt Disney to merger India media operations.
Reliance shares were trading 1.16 per cent higher at Rs 2,942.80 on the Bombay Stock Exchange (BSE) at around 10:23 am. The Mukesh Ambani-led conglomerate was the top gainer on the stock exchanges as well.
Check Reliance Industries (RIL) share price live
This comes as a welcome development for RIL's stock, which had faced momentum loss in the past five trading sessions, primarily due to cautious sentiments and profit booking.
However, the official announcement of the media merger deal on Wednesday seems to have provided a fresh spark to the stock.
Reliance-Disney media merger: Key details
As per a joint statement released by the companies, the merged entity will be valued at $8.5 billion or over Rs 70,000 crore, more than any other player in the domain.
Reliance and its associates will own a combined stake of over 60 per cent in the joint venture, while Disney will own roughly 37 per cent.
The statement added that under the agreement, Viacom18's media operations will be integrated into Star India Private Limited ("SIPL") via a court-sanctioned arrangement.
It may be noted that Nita Ambani, wife of Mukesh Ambani, will be the chairperson of the merged entity and Uday Shankar will be the vice chairperson. Basically, the joint venture will combine Viacom18 and Star India, with Viacom18's media unit merging into Star India Private Limited via a court-approved arrangement.
Reliance has also agreed to invest Rs 11,500 crore in the merged entity and Disney may also contribute certain additional media assets.
The combined media company is set to become a major player in both TV and online streaming in India, bringing together popular media assets in entertainment and sports.
"The JV will be one of the leading TV and digital streaming platforms for entertainment and sports content in India, bringing together iconic media assets across entertainment," the companies said in a joint statement.