Big changes are currently taking place in the entertainment segment of media in the country. On one hand, there is still controversy regarding the deal between Sony-Zee Entertainment. On the other hand, Mukesh Ambani's Reliance Industries also wants to buy Walt Disney's Star Network business. To understand in simple language, it wants to convert Disney+Hotstar into Jio+Hotstar. Now the news is that for this, Reliance has valued Disney's business at half its expectation. Is there any truth in this…?
A non-binding MoU has also been signed between Reliance Industries and Disney regarding the deal. During this time both the companies are going to discuss the possibilities of merger among themselves. Disney was expecting a deal worth $10 billion for the sale of its Star Network business, and now it is reported that the valuation of its assets for this has been only $4.5 billion. Reliance has now given clarification regarding this news.
Reliance gave its clarification
Reliance Industries has given clarification to the stock market regarding the valuation of this deal. Reliance says that the company will not be able to respond to the speculations in the media. It would not be appropriate to say anything about Disney's valuation.
However, a major reason for Disney's low valuation is its separate deal with Zee Entertainment regarding cricket broadcast rights. Actually Star Network has the TV rights of cricket telecast in India. However, now Zee Entertainment has withdrawn from this deal with Disney, because its deal with Sony has broken.
Reliance will benefit from Disney
If the talks between Mukesh Ambani and Disney reach a firm deal, then it is possible that Disney + Hotstar may become Jio + Hotstar by February. After the deal between Reliance Industries and Disney, it will be one of the largest media companies in the country. It will have a total of 115 TV channels and 2 OTT platforms. Currently, Star India has 77 channels and Viacom 18 has 38 channels.
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