Reliance Industries, led by Mukesh Ambani, is reportedly in advanced discussions to acquire a substantial 29.8% stake in Tata Play from the Walt Disney Company, marking a pivotal move in India’s television distribution sector. Sources suggest that Reliance aims to expand its footprint in the industry, according to a report by Business Standard.
Tata Sons, holding a majority 50.2% stake in the satellite television broadcaster, could see a strategic alignment with Reliance for the first time, as per the report. This potential collaboration would extend the reach of JioCinema, Reliance’s streaming platform, across the Tata Play platform, signalling a significant shift in the competitive landscape.
Temasek, a Singapore-based fund, holds the remaining shares in Tata Play and has been exploring options to divest its 20% stake valued at nearly $1 billion. While the negotiations are ongoing, Business Today could not independently confirm the details of the reported deal.
In the fiscal year ending March 31, 2023, Tata Play recorded a loss of Rs 105 crore on revenues amounting to Rs 4,499 crore, indicating the challenges prevalent in the sector. However, a potential partnership between Reliance and Tata could bring synergies and operational efficiencies to navigate through such challenges effectively.
Furthermore, reports suggest that Disney and Reliance are in the final stages of negotiations for a substantial stock-and-cash merger, aiming to create India’s largest media and entertainment conglomerate. Viacom18 could emerge as a significant stakeholder, potentially holding 42-45% in the combined entity. Reliance is anticipated to inject up to $1.5 billion in cash into the new venture, establishing itself as the majority shareholder with a 60% stake, while Walt Disney would retain the remaining 40%.
This proposed collaboration between two corporate giants hints at a transformative shift in India’s media landscape, potentially reshaping the dynamics of the industry and setting the stage for heightened competition and innovation.
