Under the terms, Indian billionaire Mukesh Ambani’s Reliance group would own 51% of the merged entity through a combination of shares and cash. Disney would hold the remaining 49% of shares.
The term sheet was finalized at a meeting last week in London that saw Bob Iger advisor Kevin Mayer representing Disney and Ambani advisor Manoj Modi there for Reliance. According to the Economic Times, the duo has been working for months on terms.
The merger deal is expected to be completed by February, even though Reliance is said to be hoping to wrap it up in late January.
Iger, who has cut thousands of jobs this year and faces pressure from activist investor Nelson Peltz, said on last month’s earnings call that Disney would like to stay in India, but try and “strengthen our hand, improve the bottom line.”
Hotstar, the streaming outlet initially launched by Star India, came under Disney’s control as part of the $71.3 billion acquisition of 21st Century Fox assets in 2019. Disney has used the Star assets in various ways to help attain its goal of 300 million to 350 million overall streaming subscribers by 2024.
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