Nita Ambani to chair Reliance Disney merged
Bodhi Tree promoter Uday Shankar, an ex-Disney top executive, is likely to be the vice-chairperson.
Nita Ambani, founder and chairperson of Reliance Foundation, is likely to head the entity formed upon the merger of Viacom 18 and Sony India, the media assets in the country of Reliance Industries Limited (RIL) and the US-based Walt Disney Company, respectively, according to reports.
Ambani’s spouse is billionaire and RIL chairperson Mukesh Ambani, who is among the wealthiest individuals in the world; Reliance Foundation is one of several wholly-owned subsidiaries of Reliance Industries.
Additionally, Bodhi Tree, a joint venture between British-American businessman James Murdoch and ex-Disney top executive Uday Shankar, will hold a 9% stake in the merged entity, with Disney holding around 40%, and RIL the remaining 51%, as per the reports.
Further, Bodhi Tree promoter Shankar, is likely to be the vice-chairperson of the Viacom18-Sony India joint venture.
While plans could change, an official announcement on the deal is likely on Wednesday, the reports added.
‘Unable to comment on media speculation’
On Tuesday, meanwhile, RIL, a Mumbai-based oil-to-retail conglomerate, issued a statement over reports of a binding merger pact having been signed between the two sides.
“We would like to clarify that we are unable to comment on media speculation and it would be inappropriate on our part to do so,” the company mentioned in a press release.
“The company evaluates various opportunities on an ongoing basis. Further, there is no information which has not been announced to the stock exchanges and which should have been announced by the company in terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,” the release stated.
Nita Ambani, wife of Indian billionaire Mukesh Ambani, is likely to be appointed chair of the board when Reliance Industries and Walt Disney merge their India media assets, two sources familiar with the plans said.
Reliance, controlled by the Ambani family, and Disney are closing in on signing their India media merger deal which has been in the works for months, and an announcement is likely late Wednesday, the sources said.
The plans could change ahead of an official announcement. Reliance did not respond to a request for comment, while Disney declined to comment.
Nita Ambani’s appointment as chair will come just months after she quit the board of Reliance Industries to focus more on charity work. She is currently founder and chair of the Reliance Foundation.
Nita Ambani and her family are often seen with Bollywood stars at parties they organize. She is also the founder of the Nita Mukesh Ambani Cultural Centre in Mumbai which has become a key venue for music and theatre.
Reliance and Disney each have a streaming service as well as 120 television channels between them, and the deal will strengthen Reliance’s hold over India’s $28 billion media and entertainment market.
Reuters previously reported that Reliance is likely to have a 51%-54% stake in the merged entity, a deal that will value Disney’s Indian operations at just $3.5 billion, sharply lower than the $15-$16 billion estimated in 2019.
Bodhi Tree, a joint venture between James Murdoch and former top Disney executive, Uday Shankar, is also set to take a stake of around 9% in the new merged entity. Disney will hold around 40%.
Nita Ambani’s Role in Focus
Nita Ambani’s anticipated appointment as chair follows her recent departure from the RIL board, signalling a shift towards a focus on charitable endeavours. Presently, she holds the position of founder and chair at the Reliance Foundation.
Nita Ambani, along with her family, frequently associates with Bollywood celebrities at their organized events. Additionally, she is the founder of the Nita Mukesh Ambani Cultural Centre in Mumbai, a prominent venue for music and theatre.
Nita Ambani, founder and chair of Reliance Foundation, is likely to be chair of the Reliance Industries-Walt Disney merged entity, as per reports.
According to a report in Reuters that quoted sources, Nita Ambani, Mukesh Ambani’s wife is likely to be appointed chair of the board of the entity that will be formed by merging the India media assets of Reliance Industries and Walt Disney.
Reliance and Disney are close to signing the India media merger deal that has been in the works for months. An announcement is expected this week.
Earlier this week, a report by Bloomberg stated that the binding pact to merge the media operations has been signed by Disney and Reliance. It stated that Ambani-led Reliance is expected to hold 61 per cent in the merged entity, while the rest will be held by Disney.
However, as per Reuters, Reliance is expected to hold 51-54 per cent stake in the merged entity, Bodhi Tree, a joint venture between James Murdoch and Uday Shankar is set to take a stake of 9 per cent, while Disney will hold 40 per cent.
As per the Reuters report, the plans could change ahead of the official announcement. Neither Reliance, nor Disney commented on the report.
Nita Ambani had recently stepped down from the board of Reliance Industries to focus more on the foundation. She is also the founder of the Nita Mukesh Ambani Cultural Centre in Mumbai, which has become a key venue for music and theatre.
