With the Reliance Merger Looming, Disney Could Sell Its Stake in Tata Play
Following Disney’s binding agreement with Reliance Industries to merge their Indian media business, Tata Group is offering The Walt Disney Company’s stake in subscription television broadcaster Tata Play.
According to Bloomberg, the two sides have entered preliminary discussions about an acquisition of Disney’s large minority stake in the television broadcaster.
“The companies are in preliminary talks about an acquisition of Disney’s significant minority stake, which would value Tata Play at about $1 billion or more,” reported Bloomberg, citing people familiar with the matter.
Tata Group currently holds a majority stake of 50.2% in Tata Play, while Disney and the Singapore-based Temasek hold the remainder.
Disney Gets Ready For Merger
If and when the merger with Reliance goes through, the newly created entity will control two of India’s largest streaming services and 120 linear television channels. They will also have a near monopoly on cricket television rights.
With Disney looking to streamline its India business and regulators evaluating the merger with Reliance, now may be a good time to sell.
Still, according to Bloomberg, a deal is far from a sure thing, and Tata could back out of the deal. Additionally, Disney and Reliance could look to incorporate Tata into their new entity, although that kind of maneuver would likely face regulatory scrutiny.
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