Following Blackstone, Gautam Adani, Kalanithi Maran, and the Ambanis, a fresh contender has emerged as a potential buyer for Disney’s India business. Sony Pictures Entertainment (SPE), the global entertainment unit of Japan’s Sony Group, has initiated preliminary talks with Walt Disney Co. about a potential acquisition of its India business. As per available reports, the company is looking at it as a contingency plan in case its ongoing merger agreement with Zee faces more delays or doesn’t materialise since it has been in the works for almost two years.
The Zee-Sony merger had received National Company Law Tribunal (NCLT) approval without any conditions on August 10. Since then, the company has been working on closing precedents (CPs) of the merger and it is anticipated that the merged company could be listed by December. “In case it gets pushed beyond December, there is a high likelihood that Sony may advance talks with Disney post that,” Karan Taurani, Vice President, Elara Capital, reportedly said.
Sony, in a recent statement, reportedly mentioned that the transaction, originally anticipated to close by the end of the first half of the fiscal year ending on March 31, 2024, is now expected to conclude in the coming months. The company continues to assess the impact of the transaction on its consolidated financial results.
As per Elara Capital, Sony is looking out for a strategic partner for its India and global (TV) business but it’s unlikely that the Disney-Sony deal will go through since there is a wider overlap for both platforms as they both cater to urban audiences in a big way. “Regulatory approvals like CCI, NCLT may take over a year. CCI may not provide clearance or ask to shutdown channels, as Sony/Disney will have a much larger TV ad market share of 45% (Zee/Sony TV ad market share is 25%),” Taurani said.
Sony’s discussions with Disney are still in the early stages, and as per sources, they will only actively pursue this option if the Zee deal encounters further delays or fails. While these discussions are ongoing, the Zee-Sony merger is still progressing, although with some hurdles along the way, including regulatory challenges and leadership issues.
