Reliance Shares Surge After Completing a Massive Media Merger With Disney
Image Source: Exchange4media
Reliance shares were the top gainer on the stock exchanges following its massive media merger with Disney.
Shares of Reliance Industries Limited (RIL) jumped as much as 1.5 percent in early trading after announcing a definitive agreement with Walt Disney to integrate India’s media operations. Reliance shares were up 1.16 percent at Rs 2,942.80 on the Bombay Stock Exchange (BSE) at roughly 10:23 a.m. The company led by Mukesh Ambani was also the top gainer on the stock exchanges.
This is a positive development for RIL’s stock, which had lost momentum in the previous five trading sessions, owing to cautious emotions and profit booking. However, the official announcement of the media merger deal on Wednesday appears to have re-energized the stock.
Reliance-Disney Media Merger: Key Details
According to a joint statement issued by the corporations, the amalgamated entity will be worth $8.5 billion, or over Rs 70,000 crore, more than any other participant in the space.
Reliance and its allies will hold more than 60% of the joint venture, with Disney owning approximately 37%. According to the deal, Viacom18’s media operations would be incorporated into Star India Private Limited ( SIPL ) through a court-approved mechanism.
Nita Ambani, Mukesh Ambani’s wife, will chair the merged firm, with Uday Shankar serving as vice chairperson. Essentially, the joint venture will combine Viacom18 and Star India, with Viacom18’s media section merging into Star India Private Limited under a court-approved agreement.
Reliance has also promised to spend Rs 11,500 crore in the amalgamated business, and Disney may offer some other media assets.
The united media business is poised to become a key participant in India’s TV and internet streaming markets, bringing together popular entertainment and sports media assets.
“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 two businesses said in a joint statement.
Team Profile
- News Writer
- Khusbu Jena, equipped with a sturdy educational background in Media Studies, embarks on a journey to traverse the expansive dimensions of media, aiming to intertwine it with international affairs. Their academic pursuits have endowed them with a deep comprehension of the dynamic media landscape, spanning from traditional journalism to digital platforms, as well as encompassing area studies and geopolitics. Demonstrating an inherent curiosity about diverse workspaces, Khusbu exudes an eagerness for continuous learning and exploration.
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