Subject to regulatory approval, the merger is expected to close in the first half of calendar year 2025, according to a Walt Disney regulatory filing. If the transaction is not completed by February 28, 2026, Walt Disney or RIL may terminate the merger.
The US entertainment company also said it recognized a non-cash goodwill impairment charge of $0.7 billion in the entertainment linear networks segment. It said Star Sports was a standalone reporting unit with no goodwill, and the entertainment direct-to-consumer (DTC) services unit had no goodwill impairment.
According to Walt Disney’s financial statements, Star India’s assets totaled $4.1 billion, while its liabilities were $868 million. It added that the assets and liabilities are subject to change towards the closing of the merger deal.
The company said the impairment assessment compares the carrying value of the reporting unit to its fair value, which is based on estimated discounted future cash flows. Future cash flows are based on internal forecasts that consider factors such as projected inflation, economic indicators and industry growth projections. .On February 28, Walt Disney-owned Star India entered into a definitive binding agreement with RIL and its subsidiary. Viacom 18 to make one joint venture Which will merge the businesses of Viacom18 and Star India.
The transaction will create an $8.5 billion joint venture that will include entertainment and sports pay TV and free-to-air networks. Streaming Serviceslibrary materials, and some production businesses.
Under the transaction, RIL will have an effective 56% controlling stake in the joint venture, followed by Walt Disney with 37% stake.
