According to Bloomberg News on Wednesday, The Walt Disney Company has agreed to sell its minority stake in Tata Play to the Tata Group, valuing the satellite TV provider at around $1 billion. The Tata Group now holds full control of the platform following the purchase of Disney’s 29.8% stake.
Furthermore, by acquiring a 10% stake from Singapore’s state investment firm Temasek for approximately $100 million, Tata Sons, the holding entity of India’s Tata Group, raised its stake in Tata Play to 70% last month.
Originally known as Tata Sky, Tata Play was established in 2001 as a joint venture between the Tata Group and TFCF Corp., previously known as Twenty-First Century Fox. Through its app, the company offers pay television services through set-top boxes and over-the-top (OTT) video streaming. Notably, through its acquisition of Star India, Disney acquired its stake in Tata Play which was included in the purchase of 21st Century Fox’s Indian assets in 2017.
This development coincides with Disney’s strategic shift towards merging with India’s leading conglomerate, Reliance Industries, to establish an $8.5 billion entertainment powerhouse with over 750 million viewers. In February the US-based media giant signed a binding agreement to merge its India unit with Mukesh Ambani’s Viacom18.