Walt Disney Sells Minority Stake in Tata Play to Tata Group for $1 Billion!

by  EVENTFAQS Bureau Industry Watch | May 23, 2024 | News

Walt Disney Tata Play Tata Group

Walt Disney has concluded an agreement to divest its minority interest in the subscription television broadcaster Tata Play to the Tata Group, as reported by Bloomberg. This deal values Tata Play, the satellite TV provider, at approximately $1 billion. With this transaction, the Tata Group has gained full control of the platform by acquiring Disney's 29.8% stake.

In late February, Disney committed to merging its India unit with Viacom 18 Media, forming an $8.5 billion entertainment powerhouse expected to reach over 750 million viewers and dominate India's media sector.

Established in 2001 as a joint venture between Tata Group and TFCF Corp. (formerly Twenty-First Century Fox), Tata Play offers pay television through set-top boxes and over-the-top (OTT) video streaming via its app. Tata Sons, the Tata Group's holding company, states that Tata Play has a nationwide presence with 23 million connections.

Despite a valuation decrease from its pre-pandemic target of $3 billion to $1 billion, Tata Play remains a vital asset for the Tata Group as its primary consumer-facing business in the media and entertainment realm. Although Tata Play confidentially filed for a domestic initial public offering (IPO) in 2022, the listing is pending.

Bloomberg reports that Tata Group increased its stake in Tata Play to slightly above 70% by acquiring Temasek Holding Pte's stake earlier this year. Temasek initially invested in Tata Sky, as it was then known, in 2007.

Tata Play has notified the Ministry of Information and Broadcasting about the ownership change, complying with regulations governing direct-to-home (DTH) companies. The IPO exit plans for both Temasek and Disney were postponed due to market conditions and challenges within the DTH sector.