Disney has been actively seeking potential buyers for its digital and TV business in India. The company has reportedly engaged in discussions with various entities, including US-based private equity firm Blackstone, billionaire Gautam Adani, and Kalanithi Maran, owner of Sun TV Network, for the sale of a portion of its controlling stake. A recent report has indicated that Reliance, one of Disney’s primary rivals, is on the verge of acquiring Disney’s entire Indian business.
According to sources familiar with the matter, Bloomberg disclosed that Reliance is finalizing a cash and stock deal to purchase Disney’s operations in India, valuing them at approximately $10 billion. However, Reliance’s perspective places the assets at a slightly lower valuation, ranging between $7 billion to $8 billion. Although the deal’s announcement could come as early as next month, no official decision has been made yet.
Disney’s India business includes the popular Disney+ Hotstar streaming service and Star India, making it the company’s largest operation by user numbers globally. However, the entry of JioCinema into the market intensified competition, as it offered free access to the lucrative IPL cricket tournament, which Disney had previously held the digital streaming rights to. In the fiscal year ending in March 2022, Disney’s India business faced financial challenges, posting a $41.5 million loss on revenue amounting to $390 million.
Furthermore, a significant portion of the shows that were once exclusively available on Disney+ Hotstar became accessible on JioCinema. The content on the Jio streaming platform expanded to include offerings from HBO, Warner Bros, and Max Originals. JioCinema also became the preferred platform for streaming the FIFA World Cup held the previous year.
In a strategic move, Disney+ Hotstar initiated free streaming of matches during the ongoing ICC Cricket World Cup 2023 on mobile devices. The platform also introduced various features aimed at enhancing user engagement. In response, Jio introduced data packages designed for streaming matches through its platform. This potential acquisition by Reliance marks a significant development within the Indian media and entertainment industry.
