Walt Disney Co.
DIS,
announced Wednesday an agreement with India’s Reliance Industries Ltd.
500325,
Viacom 18 Media Private Ltd. to form a joint venture that merges the companies’ digital streaming and TV assets in India. As part of the deal, in which the JV will be valued at about $8.5 billion, Reliance has agreed to invest $1.4 billion in the JV at closing, and Disney said it may also contribute certain additional media assets to the JV. After the deal closes, Disney will down 36.8% of the JV, Viacom 18 will down 46.8% and Reliance will own 16.3% The JV will have exclusive rights to distribute Disney films and productions in India. “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company,” said Disney Chief Executive Bob Iger. Disney’s stock slipped 0.4% in premarket trading.
