New Delhi | Shares of Reliance Industries on Thursday climbed nearly 2 per cent after Walt Disney Co and the firm announced the signing of binding pacts to merge their media operations in India to create a Rs 70,000 crore behemoth.
The stock of the country's most valued firm in terms of market valuation climbed 1.68 per cent to Rs 2,958 on the BSE.
It gained 1.60 per cent to Rs 2,957.95 on the NSE. The company's market valuation stood at Rs 19,90,837.18 crore.
Under the deal, coming just over a month after the failed USD 10 billion merger of rivals Zee and Sony, Reliance and its affiliates will hold 63.16 per cent in the combined entity that will house two streaming services and 120 television channels.
Disney will hold the remaining 36.84 per cent, the companies said in a statement on Wednesday.
Reliance has also agreed to invest at closing Rs 11,500 crore into the joint venture to give it the muscle to fight rivals such as Japan's Sony and Netflix.
Media ventures of Reliance are currently housed in Network 18, which owns TV18 news channels as well as a plethora of entertainment (under the 'Colors' brand) and sports channels. NW18 also has stakes in moneycontrol.com, bookmyshow and publishes magazines.
Its subsidiary NW18 owns the news channels CNBC/CNNNews.
Reliance separately owns a movie production arm - JioStudios, and majority stakes in two listed cable distribution companies, Den and Hathway.
