Disney’s India Unit Valuation Halves in Ambani Merger Talks

  • Unit valued at about $4.5 billion from $10 billion previously
  • Losses incurred from cricket rights weigh on its valuation
A Reliance Industries Ltd. sign.Photographer: Dhiraj Singh/Bloomberg
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Walt Disney Co.’s India unit is being valued at less than half of what it hoped for in a proposed merger with Indian billionaire Mukesh Ambani’s media business, reflecting the struggle global media giants face in one of the world’s fastest-growing entertainment markets.

After weeks of negotiations following a non-binding pact with Ambani’s Reliance Industries Ltd. to merge their entertainment business, Disney’s India assets are valued at around $4.5 billion, less than the $10 billion the US entertainment giant has previously pursued, according to people familiar with matter, who asked not to be identified as the discussions are private.