National Business Wire (Dec 25) -- The Walt Disney Co. and Reliance Industries Ltd (RIL) have agreed to merge their media businesses in India, according to India's Economic Times.

Citing people familiar with the matter, the report said Reliance and Disney signed a non-binding term sheet in London last week to merge their Indian media operations.

The 51:49 stock-and-cash merger will give Reliance a majority stake and the two sides are likely to formally finalise the agreement by the end of January or February next year.

And the merger, will help the two companies create India's largest media and entertainment empire.