SUMMARY
The deal will value Disney’s India operation at $3.9 Bn
Disney’s deal with Viacom18 is expected to complete by the end of February
The valuation of the deal has significantly diminished post the dissolution of Sony-Zee merger
Disney has reportedly reached a preliminary agreement to sell 60% of its Indian media business to Viacom18, a deal that will value the overseas operation at $3.9 Bn, less than what it was worth when Disney bought it in 2019.
The Wall Street Journal first reported the development.
The deal between Viacom18 and Disney comes after Reliance and Walt Disney signed a non-binding term sheet to merge their Indian media operations in December last year. The deal saw Reliance agreeing to buy Walt Disney Co.’s India operations in a cash and stock deal.
If the Reliance-Disney deal materialises, it would create a media giant with approximately INR 25,000 Cr in combined revenues.
Meanwhile, earlier last month, Mukesh Ambani-led Reliance Industries and New York Stock Exchange-listed company Walt Disney have reportedly appointed law firms and initiated antitrust due diligence for their proposed merger in the Indian media and entertainment sector.
Reliance roped in Indian law firms Khaitan & Co and Shardul Amarchand Mangaldas, while Disney engaged AZB & Partners, Reuters reported, citing sources close to the matter.
In October last year, reports first surfaced that Reliance was evaluating Disney’s India assets, encompassing the Disney+ Hotstar streaming service and Star India, at a valuation ranging from $7 billion to $8 billion. During the same period, Disney valued these operations at $10 billion.
However, post the dissolution of the Sony-Zee merger, Disney Star’s valuation reportedly took a significant hit, potentially amounting to $2 Bn.
