Walt Disney Co. and Reliance Industries Ltd. have signed a binding pact to merge their media operations in India, according to people familiar with the matter, as the US entertainment giant recasts its strategy amid intense competition in the world’s most populous country, a Bloomberg report stated yesterday.

The media unit of Reliance, controlled by billionaire Mukesh Ambani, and its affiliates are expected to own at least 61 percent of the merged entity, with Disney holding the rest, the people said, asking not to be identified as the information is not public.

The latest milestone, along with other details, is likely to be announced early this week, the people said, the Bloomberg report filed yesterday stated.

A Disney representative declined to comment. A Reliance spokesperson didn’t immediately respond to a query on the signing of the binding pact.

The stake split between the partners may change, depending on how Disney’s other local assets are factored in by the time the deal is closed, the people said.

Disney owns a minority stake in broadcast service provider Tata Play Ltd., which Reliance may consider acquiring, according to local news reports.

Disney has been grappling with challenges in India such as retaining subscribers and securing coveted media assets, while Reliance has cornered a larger slice of the local media and entertainment businesses in recent years. Together, they would make a formidable media behemoth in one of the world’s fastest-growing entertainment markets.

Ambani’s unit had outbid Disney in 2022 to win the streaming rights for the Indian Premier League, or IPL, cricket tournament and bagged a multi-year pact in April to broadcast Warner Bros Discovery Inc.’s HBO shows, which were earlier with Disney.

Disney has been mulling options for its India business, including an outright sale or setting up a joint venture with partners since July.

This transaction is part of the larger consolidation efforts in the Indian media and entertainment space. Sony Group Corp. planned to merge its local unit with Zee Entertainment Enterprises Ltd. until differences cropped up on who’ll lead the new merged media giant that ultimately gutted the deal last month.