Reliance Industries shares: Reliance Industries Limited (RIL) saw a significant rise in early trading of 1.5% following the signing of a legally binding agreement between the conglomerate and Walt Disney for the merger of their media operations in India.
Reliance was the biggest gainer on the stock exchanges as of 10:23 am, with its shares trading 1.16% higher at Rs 2,942.80 on the BSE. This upward trend is a welcome development for RIL’s stock, which had lost momentum over the previous five trading sessions as a result of profit booking and cautious sentiments.
The formal revelation of the media merger agreement on Wednesday appears to have piqued investors’ interest in Reliance’s shares again.
The combined company is valued at $8.5 billion, or more than Rs 70,000 crore, according to a joint statement issued by the two companies. This valuation exceeds that of any other player in the market. Reliance and its partners will own more than 60% of the joint venture, with Disney owning about 37%.
According to the agreement, a court-approved plan will be used to merge Viacom18’s media operations into Star India Private Limited (“SIPL”). The merged company will be chaired by Mukesh Ambani’s wife, Nita Ambani, with Uday Shankar serving as vice-chairperson. Viacom18 and Star India are essentially combined in the joint venture.
Disney may provide more media assets to the combined company in addition to Reliance’s pledged investment of Rs 11,500 crore. By combining well-known media assets in sports and entertainment, this calculated move positions the combined media company as a dominant force in Indian TV and internet streaming.
“The joint venture aims to become a premier destination for entertainment and sports content in India, consolidating prominent media assets,” announced the companies in a joint statement.
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