Sources close to the matter claim that Reliance Industries (RIL), owned by Mukesh Ambani, is in talks with the Walt Disney Company to purchase a 29.8% share in Tata Play. This action is considered a component of RIL's larger plan to strengthen its position in the Indian television distribution market. Presently, Tata Sons, the Tata group's holding company, owns 50.2% of the satellite television provider. A Singapore-based fund called Temasek is the owner of the remaining shares, aside from Disney.
The Tata group and the Ambanis will be collaborating in a joint venture for the first time if the talks are successful. Additionally, JioCinema's presence on the Tata Play platform would be expanded. Disney had planned to sell its stake during Tata Play's IPO, but when the listing was delayed, the US business started looking into alternative exit plans. Disney, Tata Sons, and RIL representatives all declined to comment.
Last year, Temasek had also been in talks with the Tata group to sell its twenty percent ownership in the company, which was estimated to be worth $1 billion. But no agreement could be made. According to a source, Reliance intends to provide Tata Play subscribers with access to the whole JioCinema video library as part of its acquisition of the Tata Play stake.
The sources claim that bankers are actively assessing Disney's ownership position in Tata Play. Among the many difficulties the satellite television provider faces is competition from streaming services like Netflix, Hotstar, JioCinema, and Amazon Prime. With revenue of Rs 4,499 crore, Tata Play reported a loss of Rs 105 crore for the fiscal year that concluded on March 31, 2023. In comparison, the company recorded a profit of Rs 68.60 crore on revenue of Rs 4,741 crore during the previous fiscal year.
The Walt Disney Company has reportedly reached a preliminary agreement to sell Reliance 60% of its linear TV, video, and over-the-top (OTT) business in India for a $3.9 billion valuation, according to a recent Wall Street Journal story. After the conclusion of the legal due diligence, the acquisition is anticipated to be announced.
The firms have inked a memorandum of understanding (MoU) whereby Disney will keep a forty percent share in its India operation, while RIL will acquire a fifty-one percent stake. The media magnate James Murdoch and former Disney India CEO Uday Shanker founded Bodhi Tree, which will own a 9% share in the TV network and OTT firm. The $1.4 billion cricket rights contract that Disney and Zed Entertainment Enterprises had was called off, which dealt a serious blow to Disney's India business valuation.
.jpg)