Mukesh Ambani and the Tata Group Contemplating a Joint Venture? Here’s what’s Brewing

Mukesh Ambani and the Tata Group Contemplating a Joint Venture? Here's what's Brewing
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Reliance Industries, owned by Mukesh Ambani, is purportedly negotiating for a 29.8% stake in Tata Play from the Walt Disney Company. This potential collaboration marks the first time the Tata Group and Reliance have joined forces in a joint venture. The aim, as per a report by Business Standard, is for Reliance to expand its presence in India’s television distribution sector.

Tata Sons holds a majority stake of 50.2% in the satellite television broadcaster. Besides Disney, the remaining shares are held by Temasek, a Singapore-based fund. Business Today was unable to independently verify the report.

If the agreement is finalized, it would mark the inaugural collaboration between the Tata Group and Reliance in a joint venture, as per the report. This partnership aims to expand JioCinema’s presence through the Tata Play platform.

Temasek has expressed its intention to divest its 20% stake in the company, estimated to be close to $1 billion.

For the financial year concluding on March 31, 2023, Tata Play recorded a loss of Rs 105 crore against a revenue of Rs 4,499 crore.

Disney and Reliance are purportedly in the final stages of discussions to conclude a significant stock-and-cash merger, aiming to establish India’s premier media and entertainment enterprise. Viacom18 may emerge as the primary shareholder, holding 42-45% stake in the merged entity. RIL is anticipated to inject up to $1.5 billion in cash into the new venture, retaining a 60% ownership, while Walt Disney would retain the remaining 40%.

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