Tata Group Mulls Acquisition Of Disney's Stake In Tata Play

Tata Sons Stalls Fresh Investments Into Its Ecommerce, Electronics Ventures : Report

SUMMARY

The companies are in early discussions regarding a potential acquisition of Disney's substantial minority stake, which could potentially value Tata Play at $1 Bn or higher

Tata Sky, later rebranded as Tata Play, was launched in 2004 . Back in 2022, Tata Sky announced its new name and identity

Now, the development comes close on the heels of Reliance, Viacom 18, and Disney signing binding agreements to set up a joint venture

Tata Group is looking to buy Walt Disney Co.’s stake in Tata Play Ltd aiming to secure complete ownership of the direct-to-home (DTH) player.

The companies are in early discussions regarding a potential acquisition of Disney’s substantial minority stake, which could potentially value Tata Play at $1 Bn or higher, Bloomberg reported. Tata Group may ultimately opt not to proceed with the deal.

Tata Sky, later rebranded as Tata Play, was launched in 2004 as an 80:20 joint venture between Tata Sons and Network Digital Distribution Services FZ-LLC (NDDS), an entity of the 21st Century Fox. Murdoch-owned Fox could only hold a 20% stake in Tata Play because India had capped the FDI in DTH at 20% at that time. After striking a $71 Bn acquisition deal with Fox, Disney became a stakeholder of Tata Play.

Back in 2022, Tata Sky announced its new name and identity, Tata Play, dropping the brand name Sky. Later in the year, Tata Play opened its over-the-top (OTT) aggregator app Tata Play Binge to all users. Earlier, the app was only available for Tata Play DTH subscribers.

Last year, Tata Play expanded content offerings for its streaming service, Tata Play Binge, by adding Apple TV+ to its platform.

Now, the development comes close on the heels of Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18) and The Walt Disney Company signing binding agreements to set up a joint venture (JV) that will combine the businesses of Viacom18 and Star India Private Limited.

The transaction is expected to be completed between October and December this year or in the first four months of 2025.

The merged entity will have over 100 TV channels and two leading over-the-top (OTT) platforms – Disney+ Hotstar and JioCinema. It will exclusively hold the rights to distribute Disney’s content in India, in addition to Reliance and Viacom18-owned sports content.

Industry experts anticipate that the merged entity will possess a diverse content portfolio capable of serving all viewer segments, positioning it to capture a significant market share in India’s media and entertainment industry. Moreover, it is poised to bring disruption to the country’s OTT (Over-The-Top) landscape.