Reliance Industries (RELI.NS), India’s most valuable company, and Walt Disney (DIS.N) have reportedly signed a non-binding term sheet to merge their Indian media operations, as per the Economic Times, citing unnamed sources. Under the proposed merger, Reliance would hold a 51% stake through a mix of shares and cash, while Disney would own the remaining 49%, giving more control to Reliance’s chairman, Mukesh Ambani. The deal is expected to be finalized by February, with Reliance aiming to conclude the process by the end of January, subject to regulatory approvals.

Neither Reliance nor Disney immediately responded to Reuters’ requests for comment. Earlier reports by Reuters had indicated that company executives were meeting in London to discuss the next steps of the potential merger.

If the merger goes through, it would create one of India’s largest entertainment conglomerates, rivaling other major players in the television and streaming industries such as Zee Entertainment (ZEE.NS), Sony (6758.T), Netflix (NFLX.O), and Amazon (AMZN.O) Prime. Reliance currently operates several TV channels and the JioCinema streaming app through its media and entertainment arm, Viacom18. Mukesh Ambani has been in competition with Disney, offering free streaming of the Indian Premier League cricket tournament, previously owned by Disney in India, leading to a decline in users on Disney’s streaming app Hotstar in recent quarters.

In light of these developments, Disney has been exploring options for its India business, including a potential sale or joint venture partnership, which comprises numerous TV channels. The proposed merger would involve creating a new unit under Reliance’s Viacom18 to take control of Star India through a stock swap, the Economic Times reported. The parties are reportedly planning to invest between $1 billion and $1.5 billion in the business, although it is unclear whether this amount represents the total investment or individual contributions from each company.

The merged entity’s board is expected to have an equal number of directors from Reliance and Disney, with a minimum of two representatives from each. Additionally, there are discussions about appointing at least two independent directors, although this arrangement may change in the future, according to the report.

Reliance Industries (RELI.NS), India’s most valuable company, and Walt Disney (DIS.N) have reportedly signed a non-binding term sheet to merge their Indian media operations, as per the Economic Times, citing unnamed sources. Under the proposed merger, Reliance would hold a 51% stake through a mix of shares and cash, while Disney would own the remaining 49%, giving more control to Reliance’s chairman, Mukesh Ambani. The deal is expected to be finalized by February, with Reliance aiming to conclude the process by the end of January, subject to regulatory approvals.

Neither Reliance nor Disney immediately responded to Reuters’ requests for comment. Earlier reports by Reuters had indicated that company executives were meeting in London to discuss the next steps of the potential merger.

If the merger goes through, it would create one of India’s largest entertainment conglomerates, rivaling other major players in the television and streaming industries such as Zee Entertainment (ZEE.NS), Sony (6758.T), Netflix (NFLX.O), and Amazon (AMZN.O) Prime. Reliance currently operates several TV channels and the JioCinema streaming app through its media and entertainment arm, Viacom18. Mukesh Ambani has been in competition with Disney, offering free streaming of the Indian Premier League cricket tournament, previously owned by Disney in India, leading to a decline in users on Disney’s streaming app Hotstar in recent quarters.

In light of these developments, Disney has been exploring options for its India business, including a potential sale or joint venture partnership, which comprises numerous TV channels. The proposed merger would involve creating a new unit under Reliance’s Viacom18 to take control of Star India through a stock swap, the Economic Times reported. The parties are reportedly planning to invest between $1 billion and $1.5 billion in the business, although it is unclear whether this amount represents the total investment or individual contributions from each company.

The merged entity’s board is expected to have an equal number of directors from Reliance and Disney, with a minimum of two representatives from each. Additionally, there are discussions about appointing at least two independent directors, although this arrangement may change in the future, according to the report.