Disney is reportedly nearing a deal to sell its India operations, namely Disney+ Hotstar, to Reliance Industries, its biggest rival in the country, rather than sell the business in parts, according to Reuters.
What’s Happening:
- Disney has been exploring options to sell or find a partner for its India assets, valued at around $10 billion.
- The company previously held talks in July with billionaires Gautam Adani and Sun TV Network-owner Kalanithi Maran, as well as private equity firm Blackstone.
- However, Disney may now sell a controlling stake in the business to Reliance, the Mukesh Ambani-controlled conglomerate whose streaming platform's success has weighed on the U.S. company's Indian business.
- Reliance, whose broadcast venture Viacom18 runs JioCinema, values Disney's India assets, which comprises the Disney+ Hotstar streaming service and Star India, at between $7 billion and $8 billion, the report said.
- The enterprise value of the India business, Disney's biggest last year globally by users, was seen at around $15 billion to 16 billion when Disney took over Fox's business.
- The deal could be announced as early as next month, although no final decision has been made and Disney could still decide to hold onto the assets.
- JioCinema has put increased pressure on Disney India and other streaming platforms, with Ambani marketing the platform by offering free access to the Indian Premier League cricket tournament, digital rights of which were earlier with Disney.