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Reliance Industries, owned by billionaire Mukesh Ambani, is reportedly negotiating to acquire Disney’s share in Tata Play, a satellite TV service provider, according to the Business Standard. The objective is to enhance its media footprint.
The conglomerate, which spans from oil to telecom, is interested in purchasing Disney’s 29.8% stake in Tata Play, which has been operating at a loss.The intention is to provide Tata Play’s customer base with access to its entire JioCinema content.
The current valuation of Disney’s stake in Tata Play, which also provides video streaming services, is being determined by bankers.
First-ever partnership between Tata Group and Reliance
If the deal goes through, it would mark the first-ever partnership between the Tata Group and Reliance. Tata Sons holds a majority stake of 50.2% in Tata Play, while Singapore’s Temasek owns about 20%, and Disney holds the remaining shares.
What the deal may mean for Tata Play subscribers
Reliance, which operates several TV channels and the JioCinema streaming app via its media division Viacom18, aims to solidify its position in India’s $28-billion media and entertainment industry.
In fiscal 2023, Tata Play reported a loss of 1.05 billion rupees (about $13 million), compared with a profit of 686 million rupees. Its revenues fell 5% during the same period.
The company, backed by Temasek, had submitted a $300 million IPO over a year ago, as reported by the Economic Times.
Requests for comments from Reliance and Disney were not immediately answered, and a Tata Play spokesperson declined to comment.
Earlier this month, Reuters reported that Reliance is nearing a merger with Disney’s India media business, holding a 51%-54% stake. The agreement values Disney’s Indian operations at $3.5 billion.
Bodhi Tree, a joint venture between James Murdoch and former Disney executive Uday Shankar, is also expected to acquire approximately 9% stake in the merged entity, with Disney retaining around 40%.
The conglomerate, which spans from oil to telecom, is interested in purchasing Disney’s 29.8% stake in Tata Play, which has been operating at a loss.The intention is to provide Tata Play’s customer base with access to its entire JioCinema content.
The current valuation of Disney’s stake in Tata Play, which also provides video streaming services, is being determined by bankers.
First-ever partnership between Tata Group and Reliance
If the deal goes through, it would mark the first-ever partnership between the Tata Group and Reliance. Tata Sons holds a majority stake of 50.2% in Tata Play, while Singapore’s Temasek owns about 20%, and Disney holds the remaining shares.
What the deal may mean for Tata Play subscribers
Reliance, which operates several TV channels and the JioCinema streaming app via its media division Viacom18, aims to solidify its position in India’s $28-billion media and entertainment industry.
In fiscal 2023, Tata Play reported a loss of 1.05 billion rupees (about $13 million), compared with a profit of 686 million rupees. Its revenues fell 5% during the same period.
The company, backed by Temasek, had submitted a $300 million IPO over a year ago, as reported by the Economic Times.
Requests for comments from Reliance and Disney were not immediately answered, and a Tata Play spokesperson declined to comment.
Earlier this month, Reuters reported that Reliance is nearing a merger with Disney’s India media business, holding a 51%-54% stake. The agreement values Disney’s Indian operations at $3.5 billion.
Bodhi Tree, a joint venture between James Murdoch and former Disney executive Uday Shankar, is also expected to acquire approximately 9% stake in the merged entity, with Disney retaining around 40%.
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