Recent reports indicate that Disney is currently selling a 60% share of its Indian operations to Viacom 18, a subsidiary led by Mukesh Ambani of Reliance Industries Limited. The transaction is valued at approximately $3.9 billion or 33,000 crore Indian Rupees.
This development follows discussions between Reliance Industries and Walt Disney in December 2023 about potentially consolidating their entertainment ventures in India, which did not culminate in a concrete agreement regarding the structure or financial aspects of the deal.
On Thursday, it was reported that Disney had agreed to transfer a majority share of its Indian segment to Viacom18, with expectations of finalizing the deal within the month. This transaction is poised to significantly impact India’s media and entertainment landscape, especially after the previous month’s unsuccessful merger between Zee and Sony.
Reliance initially considered acquiring Disney’s Indian assets, including the Disney+ Hotstar platform and Star India, in October, estimating their worth between $7 billion and $8 billion, whereas Disney’s assessment was around $10 billion.
Additionally, there’s a brewing competition between Disney Star and Viacom18 over advertising rights for the 2024 Indian Premier League (IPL). Disney Star reportedly sets its advertising rates at 167 crores and 83 crores for co-presenting and associate sponsorships on standard-definition channels, with higher rates for high-definition broadcasts.
In contrast, Viacom18 aims to maintain its ad rates for streaming IPL matches on JioCinema to attract a broader advertising base. It has attracted over 500 advertisers for the 2023 IPL season.
In recent news, Disney Star is considering legal action against Zee Entertainment due to the fallout of a $1.4 billion contract for broadcasting international cricket in India. This decision comes after complications emerged from the Sony merger scenario.
Following its failure to make the initial $200 million payment, Zee Entertainment has notified Disney Star of withdrawing from the agreement to Disney Star.
