Tata Group and Mukesh Ambani eyeing a Joint Venture
If a joint venture happens, it will only be the first time Reliance and Tata Group will collaborate, extending the Jio Cinema’s market reach across the Tata Play platform.
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Reliance Industries and Tata Group about to crack a mega joint venture deal
Reliance Industries, a multinational company headquartered in Mumbai, is supposedly in discussions for a 29.8% stake in Tata Play from the Walt Disney Corporation. If a joint venture (JV) happens, it will only be the first time Reliance and Tata Group will collaborate, extending the Jio Cinema’s market reach across the Tata Play platform.
According to reported discussions, Reliance is planning for a bigger footmark in the Indian television distribution industry. Tata Sons has a 50.2% stake in the television broadcaster. The remaining stakes are owned by a Singapore-based fund named Temasek besides the holdings of Disney.
However, Temasek has been planning to dispose of its 20% stake in the broadcaster, which has a value of approximately $1 billion. Tata Play posted a loss of Rs 105 crore on a revenue of Rs 4499 crore.
Reliance and Disney are in the last phase of their discussions to wrap up their mega stock-and-cash tie-up to build the largest media & entertainment business in India. Reliance is likely to spend around $1.5 billion cash in the JV by holding 60% with Disney possessing the remaining 40%. Viacom18 could turn out to be the single biggest shareholder by owning around 42-45% of the combined entity.
