Disney CEO Hails India Business Merger with Reliance as 'Best of Both Worlds

Walt Disney Company CEO Bob Iger has expressed his strong support for the recently announced merger of Disney's India arm with Reliance Industries' media business. Speaking at a Morgan Stanley investor conference, Iger described the deal as the "best of both worlds" for Disney.

Balancing Growth and Risk

Iger acknowledged the challenges of operating in the Indian market, despite its vast potential. Disney's previous investment in acquiring 21st Century Fox assets solidified its presence in India, but Iger recognized the need for a strategic partnership.

Reliance: A Strong Partner

The merger with Reliance, a dominant player in the Indian market, provides Disney with a valuable partner. "We had an opportunity to align with Reliance... one that we respect," Iger said. This partnership allows Disney to maintain a significant presence while mitigating risks.

Creating a Media Powerhouse

The combined entity, valued at $8.5 billion, will house over 100 TV channels and two leading streaming platforms: Disney+ Hotstar and JioCinema. This formidable force is expected to challenge global giants like Netflix and Amazon Prime Video in the Indian market.

Analyst Optimism

The deal has received positive reactions from analysts. Bernstein views it as beneficial for Disney, allowing them to focus on core markets while retaining a stake in the lucrative Indian market. Kotak Institutional Equities believes the merger will make Reliance a dominant player in Indian media, creating a powerful competitor to Netflix and Amazon Prime Video.

Bob Iger concluding remarks, "It's kind of the best of both worlds," perfectly encapsulate the sentiment surrounding this strategic alliance. The merger positions both Disney and Reliance for significant growth in the ever-evolving Indian media landscape.