India’s most valuable company, Reliance Industries Ltd (RIL), has inked a non-binding term sheet with Walt Disney in London on December 25 to merge their Indian media and entertainment operations, according to an Economic Times report. RIL’s Jio Cinema, Disney’s Star India and Disney+Hotstar will be included in the deal. 

The ET report added that independent valuers will begin a valuation exercise, and legal and tax advisors will be appointed to the board. Under the stock-and-cash merger deal, Reliance would own a 51% stake in the combined entity, and Disney would hold the remaining 49%. 

ET reported that the new entity’s board is anticipated to have equal representation from both sides, with at least two directors from each. The companies are also considering having at least two independent directors, but this might change in the coming weeks.

The merger will likely be completed by February 2024, subject to regulatory approvals. However, Reliance aims to complete the procedure by January 2024.

The merger will reportedly include an immediate capital investment of approximately $1-1.5 billion. Reliance will likely set up a new subsidiary to acquire Disney’s Star India through a share swap deal. Viacom18, Reliance’s media and entertainment unit, runs many TV channels and the JioCinema streaming app.