Walt Disney Co (NYSE:DIS, ETR:WDP) is said to have put pen to paper on a deal with Reliance Industries to merge the pair’s Indian-based media operations.
According to Bloomberg, the duo have signed a binding agreement over the deal, which would see Reliance take on a 61% ownership stake in the mega entertainment entity.
Disney would sell 61% of its Indian operation to Reliance-owned Viacom 18 as part of this agreement, at a valuation of US$3.9 billion.
Reliance is also said to be mulling the acquisition of broadcast service provider Tata Play Ltd, in which Disney holds a minority stake.
India, the world’s most populous country, boasts one of the fastest-growing entertainment markets globally.
Such an agreement, which is expected to be confirmed early this week, would come after Disney has struggled to gain ground against Reliance in India, with the latter holding rights for the likes of IPL cricket and Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A)’s HBO shows.