Reliance is advancing talks with Walt Disney DIS.N to merge its India media businesses, with the Indian firm set to pick up a 51%-54% stake valuing the U.S. giant's domestic business at $3.5 billion, three sources with direct knowledge of the matter said.
Disney's India unit was valued by analysts at $15-$16 billion when Disney acquired Fox in 2017.
Bodhi Tree, which is a joint venture between James Murdoch and a former Disney executive, Uday Shankar, is also in talks to take a stake of around 9% in the merged entity, the sources added.
Reliance, Disney and Bodhi Tree did not immediately respond.
Reliance and Disney, which each have a major streaming service as well as 120 television channels between them, have been in talks for weeks to create an entertainment superpower in the world's most populous nation.
Under the deal, Viacom18, the broadcast division of Ambani's Reliance Industries will merge with Disney India businesses. Two of the sources said the final percentage stake numbers could change.
Viacom18's shareholders also include Paramount Global as well as Bodhi Tree, which invested $500 million in the Indian company last April. Shankar also serves on Viacom18's board.
