Reliance Industries and Walt Disney announced a merger of their Indian television and streaming assets, forging an $8.5 billion entertainment giant, with Reliance injecting $1.4 billion into the combined entity. Led by Mukesh Ambani, Reliance will hold over 63% of the stake, with Disney owning the remainder. The move comes as Disney seeks to revitalize its struggling Indian streaming business amidst financial strain from hefty cricket rights payments.

The merger, aimed at combating user exodus and bolstering market presence, values Disney's Indian business at around $3 billion, significantly lower than its 2019 acquisition valuation. The merged entity will boast 120 TV channels, two streaming platforms, and lucrative cricket rights, positioning it as a dominant force in India's media landscape.

Analysts anticipate enhanced bargaining power for Reliance and financial relief for Disney, while Ambani's wife, Nita, will chair the board, with former Disney executive Uday Shankar as vice chair. The deal underscores Ambani's ambitions to outpace competitors like Sony, Zee Entertainment, and Netflix in India's booming media sector.

With a combined viewership of over 750 million, the merged entity aims to cater to both local and global audiences. Disney CEO Bog Iger expressed confidence in Reliance's market understanding, envisioning expanded digital services and entertainment offerings.

However, challenges loom as Disney faces pressure to streamline its global operations and confronts activist investor demands for profitability. Despite setbacks, Disney remains committed to India, recognizing its strategic importance and growth potential in the international market.