Disney and Reliance talk about merging India entertainment sector

Walt Disney and Reliance Industries have discussed merging their Indian entertainment businesses, but they haven't come to a consensus on pricing or organizational structures. The two parties have been in discussions for several weeks on a potential joint venture in which Reliance might end up with the dominant stake. One of India's largest entertainment conglomerates would be formed via the merger, putting it up against streaming behemoths like Netflix and Amazon Prime as well as TV players like Zee Entertainment and Sony.

The companies disagree over whether Disney or Reliance's media unit is more highly valued. 

As per the sources, "Disney has expressed interest and Reliance is keen only if there's a controlling stake. There is no broad agreement right now," they also added that any potential deal closure was not likely in the near term.

It has been reported earlier that the companies are finalising the details of a non-binding term sheet to merge their operations in India, which could see Reliance have a 51% stake. The first sources said the possible stake percentages each side could take were not yet discussed in detail. 

Indian billionaire Mukesh Ambani's Reliance runs many TV channels and JioCinema streaming app through its media and entertainment unit Viacom18. Ambani has been locked in fierce battle with Disney by offering free streaming of Indian Premier League cricket tournament, whose digital rights were once with Disney in India.