Star-Viacom18 likely to post $200 million loss on sports, streaming: Report

Talks are a sign of how Star India’s fortunes have changed since Disney’s purchase of Fox entertainment assets

Reliance could hold more than 51% of the shareholding in the proposed Star-Viacom18 merged entity, with Disney owning a 40% stake, one of the people said. Uday Shankar and James Murdoch-promoted Bodhi Tree Systems' stake in the merged entity could be 7-9%.Another person said Reliance is anticipated to inject additional capital in the merged entity, establishing it as a direct subsidiary.

Reliance will infuse $1.4 billion in the merged entity, with the company and its affiliates holding a more than 63% stake. Disney will hold about 37%, the companies said in a joint statement.

On July 13, Iger in an interview told a business channel at The Allen & Company Sun Valley Conference in Sun Valley that the Walt Disney Company is reconsidering its approach to traditional TV business and may consider selling a part of it, including ABC and FX networks. A day before Iger's interview, the WSJ had written about Disney exploring strategic options for its India business.

Reliance Industries and Walt Disney have signed a binding agreement to merge Viacom18 and Star India, creating India's largest media empire. The deal is expected to be announced this week, spanning TV broadcasting, streaming, movies, and sports. Reliance will own 61% of the combined company, with Uday Shankar as the leader.

India Business News: Reliance Industries and Walt Disney have signed a binding pact to merge their media operations in India in an $8.5-billion deal. The merger will create a behemoth with 120 TV channels and two digital OTT platforms. Reliance will own 63% in the merged entity, while Disney will hold the remaining 37%. Nita Ambani will lead the merged company's board.

Both companies, each with a significant presence in the streaming service market and a combined total of 120 television channels, are exploring the merger to create a dominant entertainment entity in India, with Reliance expected to hold a majority stake.

The US entertainment giant may sell a controlling stake in the Disney Star business, which it values at around $10 billion, as opposed to piecemeal transactions weighed earlier, the people said, asking not to be named because the discussions are private. Reliance views the assets at between $7 billion to $8 billion, some of the people said.

As of now, Reliance will effectively control the joint venture. It will own a direct stake of 16.34% in the company, while subsidiary Viacom18 will own 46.82%, and Disney 36.84%.