Reliance Industries Says 'No Comment' On Disney Merger Speculations

Reliance Industries has refrained from commenting on media speculations about a potential merger with Disney’s India unit, according to a letter sent to stock exchanges on January 30, 2024.

What Happened: The company responded to a letter from the stock exchanges seeking clarification on the news item titled “Disney's India unit valuation halves in Ambani merger talks.” In its response, Reliance Industries stated that it would be inappropriate to comment on media speculation.

The company added that it is always involved in ongoing evaluation but added nothing further on that. “There is no information which has not been announced to the stock exchanges and which should have been announced by the Company in terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” the letter read.

See Also: Starlink’s India Entry May Be Impacted By Verizon’s Past Licensing Issues: Here’s Why

Why It Matters: The potential merger between Reliance Industries and Disney’s India unit has been a topic of discussion since December 2023, when reports emerged about the advanced discussions between the two companies to merge their media and entertainment operations in India. The proposed merger could result in the formation of the nation's largest media conglomerate.

However, the recent dispute between Zee Entertainment Enterprises and Disney Star over a $1.5-billion sub-licensing deal for International Cricket Council (ICC) rights has prompted Reliance to consider a potential $2-billion valuation downgrade for Disney Star. This comes amidst predictions of financial losses from the media rights agreement.

Moreover, Zee's failure to make a $200 million payment to Disney for cricket rights amid its merger woes with Sony Group Corp. has further complicated the situation.

Price Action: Reliance’s share price was down around 1.38% to trade at ₹2,856.20 in the late hours of trading on Tuesday.

Read Next:  ITC Shares Volatile After Q3 Results: Buy, Sell Or Hold?

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesM&ANewsRumorsMarketsMediadisneyReliance