RIL set to sign a deal with Disney's UTV

According to sources, Reliance Industries (RIL) is set to sign a deal with the Indian unit of Walt Disney, to acquire content for its telecom operations. The deal by Reliance with UTV Software, in which Disney controls 50.44 per cent, is expected to be completed in the coming weeks, sources added. However the value of the deal could not be ascertained.

Reliance, which has diversified into telecom, retail, financial services and hospitality sectors in recent years from its core business of refining and oil and gas exploration, last year acquired Infotel, which emerged as the only firm to secure nationwide wireless broadband radio airwaves in an auction.

We believe the deal is expected to give Reliance access to games, entertainment and children's content for their telecom operations. Moreover there are unclear reports that RIL has plans of building a data-focused business which will provide mobile, smart-phone, tablet and computer users’ access to the net and online related services via a wireless broadband network.

The diversified company, which has been under pressure from falling gas output, has pushed for tie-ups in recent months to boost its business. The stock has been a laggard, falling 24 percent in the year to date compared with a 21 percent drop in the main index, largely due to falling gas output.