A non-binding deal is signed by Disney and Reliance to combine their Indian media operations: Reuters

 A non-binding deal is signed by Disney and Reliance to combine their Indian media operations: Reuters

A non-binding deal is signed by Disney and Reliance to combine their Indian media operations: Reuters

Subject to regulatory permissions, Reliance hopes to conclude the process by the end of January, although the transaction is expected to close by February at the latest.

Giving Indian billionaire Mukesh Ambani's Reliance Group more power, the report said that Reliance would possess a 51 percent ownership via a mix of shares and cash under the merger, while Disney would keep the remaining 49 percent.

The Economic Times claimed on December 25 that Reliance Industries, the most valued firm in India, and Walt Disney had inked a non-binding term sheet to combine their Indian media assets, citing people with knowledge of the negotiations. Name was kept a secret.

According to the publication, Reliance would acquire a 51 percent interest in the merger via a mix of cash and shares, with Disney holding the remaining 49 percent. This would provide Indian billionaire Mukesh Ambani's Reliance Group more authority.

Subject to regulatory permissions, Reliance hopes to conclude the process by the end of January, although the transaction is expected to close by February at the latest.

Disney and Reliance did not immediately reply to calls for comment from Reuters.

Two weeks ago, Reuters revealed that officials from the corporation were gathering in London to deliberate on the subsequent stage of the media merger.

As a result of the merger, one of India's biggest entertainment conglomerates will be formed, competing with streaming behemoths like Netflix and Amazon Prime as well as television companies like Zee Entertainment and Sony.

Reliance uses its media and entertainment division Viacom18 to operate a number of TV stations and the JioCinema streaming app. Disney and Ambani are engaged in a heated dispute over whether or not to provide free streaming for the Indian Premier League cricket competition. Disney used to own the digital rights to the event in India.

In recent quarters, this has led to a greater number of consumers leaving Disney's streaming service Hotstar. Disney has been considering a sale or joint venture for its Indian business, which consists of many TV networks, since the beginning of this year. According to the Economic Times, the planned agreement would see a company established under Reliance's Viacom18 acquire ownership of Star India via a stock exchange. It did not clarify if it was the entire amount or the amount that each would contribute when it said that the parties were developing a plan to spend $1 billion to $1.5 billion in the company.

According to the publication, Reliance and Disney are anticipated to have an equal number of directors on the board, with at least two members from each company. According to the source, they are also thinking of appointing at least two independent directors, although that may change in the next weeks.