The Economic Times reported on Monday that the two conglomerates have inked a non-binding term sheet, setting the stage for a merger of their Indian media operations. The report cites unnamed sources and, as yet, there has been no comment from Reliance Industries on this rumored merger with Disney India. 

The proposed merger involves two key players: Reliance-owned Viacom18 will establish a step-down subsidiary to absorb a significant portion of Star India's stock, paving the way for a 51%-49% share distribution. This would mean that post-merger Reliance will own 51% of the Indian media company while Disney will hold 49% of the shares.

Jio Cinema, owned by Reliance, is also set to be part of this merger package. The deal sees remaining as a dominant stakeholder, and even paying cash for the controlling stock in the merged entity. 

What started with the signing of the term sheet last week in the UK is expected to conclude with a substantive media and entertainment merger in India by February 2024. This promises to revolutionize the country's viewing and streaming world. Despite eagerness to wrap up the deal by January, all commercial ratifications and regulatory approvals are projected to be completed only by February. 

This deal didn't appear overnight. The non-binding agreement was allegedly signed in London after months of negotiations. Attendees included Kevin Mayer, a former Disney executive, and Manoj Modi, a close aide to Mukesh Ambani, the head of Reliance Industries. 

For those in the industry, this proposed union is monumental. A merger on this scale would create one of India's largest entertainment empires, firing it onto par with current big players like Zee Entertainment, Sony, Netflix, and Amazon Prime. 

As we await more updates on the Disney-Reliance deal, the $10 billion merger between Zee Entertainment Enterprises and Sony Group Corp.'s local unit is still hanging in the balance. This deal, announced two years ago, hasn't yet got the final green light. 

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