Walt Disney Co. has reached an agreement to sell its minority stake in Tata Play Ltd., a subscription television broadcaster, to Tata Group. This strategic move allows Disney to concentrate on merging its Indian operations with Viacom 18 Media Pvt, a media arm owned by billionaire Mukesh Ambani. This merger aims to create a significant entertainment entity in India.
Valuation and Ownership Changes
The transaction values Tata Play Ltd. at approximately $1 billion. Tata Group has now gained full control of the TV platform by purchasing Disney’s 29.8 percent stake. The confidential nature of the deal was disclosed by sources familiar with the matter.
This deal occurs amidst a transformative period in India’s media industry. In late February, Disney signed a binding agreement to merge its Indian unit with Viacom 18 Media Pvt, establishing an entertainment giant valued at $8.5 billion. This merger is expected to attract an audience of 750 million viewers, solidifying a dominant position in India’s populous market.
Tata Play’s Evolution
Founded in 2001 as a joint venture between Tata Group and TFCF Corp. (formerly Twenty-First Century Fox), Tata Play provides pay television through set-top boxes and over-the-top video streaming via its app. The company boasts a pan-India presence with 23 million connections. In 2022, Tata Play confidentially filed for a domestic initial public offering, though the listing has yet to materialise.
Earlier this year, Tata Group increased its stake in Tata Play to just over 70 percent by acquiring shares from Temasek Holdings Pte. Temasek initially invested in Tata Sky (the former name of Tata Play) in 2007.
Representatives from Tata Group, Disney, and Temasek have declined to comment on the recent developments.
This strategic realignment illustrates Disney’s intention to solidify its presence in the Indian market while allowing Tata Group to strengthen its control over Tata Play. The evolving media landscape in India promises significant growth and consolidation opportunities.
