Reports indicate that Reliance Industries is considering the acquisition of Disney’s India Business, valued at approximately $10 billion.
Walt Disney Co. is reportedly close to finalizing a deal to sell its Indian Business, estimated to be worth approximately $10 billion, to Reliance Industries.
Previous discussions were held with notable figures such as Gautam Adani, Kalanithi Maran of Sun TV Network, and the private equity firm Blackstone.
Nevertheless, Disney is leaning towards renouncing a majority stake in its Indian business to Reliance, a conglomerate overseen by Mukesh Ambani. This entity has gained traction in the streaming market through its platform, JioCinema, affecting Disney’s market share in India.
Reliance values Disney’s assets in India, which include the Disney+ Hotstar streaming service and Star India, at between $7 billion and $8 billion. When Disney acquired Fox’s business, the enterprise value of its Indian operations was pegged at approximately $15 billion to $16 billion, making it the company’s most extensive global user base last year.
The potential agreement could be publicized as early as next month, although Disney has not ruled out the possibility of retaining its assets. Disney or Reliance has released no official statements as of yet.
JioCinema has disrupted the streaming landscape in India by providing free access to high-profile events such as the Indian Premier League cricket tournament, the digital rights of which were previously held by Disney. This strategic move has placed additional pressure on Disney’s operations in India and other streaming platforms.
Karan Taurani, Senior Vice President and Research Analyst at Elara Securities, commented on the situation. “If Reliance offers Disney content at no cost, the growth rate for the OTT industry could be suppressed, as revenues from subscription video-on-demand would be adversely affected.”
In addition, regulatory challenges could emerge from the significant similarities between the content offered by Reliance’s TV18 Broadcast and Disney within the urban genre. This overlap might require shutting down certain channels to secure regulatory approvals.
Ragul Thangavel
With over nine years of diverse professional experience, Ragul has made significant contributions across various domains, including Media Operations, OTT Technologies, Video Production, Ecommerce, and Social Media.
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