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       Disney to Step Back From India in Mega-Deal with Reliance Industries

       Mukesh Ambani’s Reliance Industries will control what is left of Disney’s grasp at India’s burgeoning media market.

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       A cricket broadcast in New Delhi. Credit...Andrew Boyers/Reuters

       By Alex Travelli and Sameer Yasir

       Reporting from New Delhi

       Feb. 28, 2024Updated 11:05 a.m. ET

       The Walt Disney Company announced on Wednesday a joint venture with India’s biggest conglomerate, Reliance Industries, in an $8.5 billion deal that will create a media powerhouse in the world’s most populous nation and end Disney’s decades-long solo effort to gain a foothold in the market.

       Reliance Industries, which is owned by Mukesh Ambani, India’s richest person, will be Disney’s senior partner in the deal. With $239 billion in market capitalization and rights to the wildly popular Indian Premier League cricket matches, Reliance is a juggernaut in the media landscape in India.

       Disney and Reliance already had a combined market share of about 40 to 45 percent in advertising and about the same fraction of streaming, giving them a big edge over competitors, said Karan Taurani, a research analyst at Elara Capital.

       “This will lead to better profitability because the content costs could come down” in both TV and streaming, Mr. Taurani said.

       As part of the deal, Disney will merge its Indian operations with those of Viacom18, a part of Reliance Industries. Reliance and Viacom18 will hold 63 percent of the new venture, and Disney 37 percent, the companies said in a statement. Reliance will pay $1.4 billion to consolidate its control.

       More on the Walt Disney Company Movie Executive Steps Down: Sean Bailey, the longtime president of Walt Disney Studios Motion Picture Production, resigned amid a leadership shuffling at Disney’s film division, which has been under attack by some investors for disappointing results at the box office. Password Sharing: The Walt Disney Company, which owns Disney+, ESPN+ and Hulu, banned password sharing in an effort to boost its subscriber numbers and make its streaming services business profitable. Lawsuit Against DeSantis: In a significant victory for Gov. Ron DeSantis of Florida, a federal judge threw out a lawsuit filed by Disney claiming that DeSantis violated the First Amendment by taking over a special tax district that encompasses Walt Disney World. New Board Members: Disney, bracing for a new proxy battle with the activist investor Nelson Peltz, has reinforced its board by adding James Gorman, Morgan Stanley’s chief executive, and Jeremy Darroch, who formerly ran the British TV company Sky.

       Nita M. Ambani, Mr. Ambani’s wife, will be the chair of the joint venture; the vice chair will be Uday Shankar, the former chairman of Disney India.

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       Alex Travelli is a correspondent for The Times based in New Delhi, covering business and economic matters in India and the rest of South Asia. He previously worked as an editor and correspondent for The Economist. More about Alex Travelli

       Sameer Yasir covers news from India and other countries in the region. He is based in New Delhi. More about Sameer Yasir

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