Gurgaon, Feb. 5 -- Talks for a merger between Disney and Reliance's media businesses in India are underway. Reliance is expected to acquire a 51-44% interest in the combined company, which is valued at USD 3.5 billion. A 9% share in the combined company may also be acquired by Bodhi Tree, a joint venture between James Murdoch and Uday Shankar, according to Reuters. In RIL's broadcast section, Bodhi Tree is a shareholder. By February, the two businesses hope to have a legally binding agreement.

Disney and Reliance, who together own 120 television channels and a sizable streaming business, have been in discussions for weeks to establish an entertainment powerhouse in India. The goal of the present deal consolidation is to create India's bi...