Jio Cinema massive deal with Walt Disney
In an attempt to broaden his economic empire, multibillionaire Mukesh Ambani Jio Cinema is now entering the entertainment sector by negotiating a multi-billion dollar contract with Walt Disney Co., one of the largest production studios globally.
In a huge deal, Mukesh Ambani’s Jio Cinema is expected to acquire the Walt Disney Co.’s Indian operations, according to a recent report by Bloomberg. Reliance is anticipated to be able to obtain a majority interest in Disney’s Indian operations as a result of this agreement.
With Reliance’s strategic clout in the nation, Walt Disney Co., a well-known American entertainment conglomerate, will be able to grow its business and maintain a small ownership position in the company’s activities in India.
Disney Star is believed to be worth USD 10 billion (about Rs 83,138 crore), and the Walt Disney Company deal is anticipated to cost more than USD 5 billion. Disney’s assets are currently valued at approximately USD 7-8 billion (Rs 62,378 crore) by Mukesh Ambani’s company.
It is anticipated that in November, Reliance and Walt Disney will both make the announcement about the significant acquisition. Disney+ Hotstar and Reliance-owned Jio Cinema may collaborate as a result of the latter’s impending merger with Disney’s media divisions.
The Indian Premier League (IPL) streaming rights were previously purchased by Mukesh Ambani’s Jio Cinema for USD 2.7 billion (Rs 22,450 crore). The major domestic cricket event was then streamed by Reliance for free without requiring a subscription.
A request for comment from Ambani’s Reliance Industries’ television company, Viacom18, was not immediately answered. Paramount Global and Bodhi Tree, a joint venture between James Murdoch and Uday Shankar, a former top Disney executive, are also among its shareholders. business officials and media analysts stated that the Warner acquisition will support Viacom18’s previously declared intentions to “innovate and disrupt” the business and aid in drawing in India’s premium English-speaking audience.
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For many years, the Indian Premier League and other big international cricket competitions have been streamed by Disney+ Hotstar, but Reliance has been undercutting the streaming service’s earnings by charging less through Jio Cinema.
The deal price or exact valuation has not yet been made public, however, it is anticipated that it will be within the first week of November 2023. Disney+ Hotstar Reliance is currently considering its options, so it’s uncertain whether or not the deal will go through. It could opt to keep conducting business here for an extended period of time. Additionally, it’s also possible that Reliance won’t ultimately acquire its interests.