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In a move poised to shake up India’s media and entertainment landscape, Mukesh Ambani-led Reliance Industries is reportedly in advanced discussions to purchase a significant stake in Tata Play, formerly known as Tata Sky, from its current shareholder Walt Disney. According to sources cited by the Business Standard newspaper, Reliance is eyeing approximately 29.8% of Tata Play’s stake, currently held by Disney.
If successful, this potential collaboration between Reliance Industries and the Tata Group marks a significant milestone, representing the first-ever partnership between the two conglomerates. The deal could also have far-reaching implications for JioCinema, Reliance’s streaming platform, potentially expanding its reach to Tata Play customers and offering them a diverse range of streaming content.
Currently, Tata Sons holds a majority stake of 50.2% in Tata Play, while Walt Disney commands around 30% ownership. The remaining shares are held by Temasek, a Singapore-based investment fund. Disney had initially planned to divest its stake in Tata Play through the company’s IPO, which was subsequently postponed, prompting Disney to explore alternative exit options.
Bankers are currently evaluating Disney’s stake in Tata Play, which not only provides satellite TV services but also offers access to video streaming platforms. However, neither Reliance, Tata Play, nor Disney has issued any official statements regarding the ongoing negotiations.
Reliance’s interest in Tata Play comes amid its strategic efforts to bolster its presence in India’s thriving media and entertainment sector, valued at $28 billion. With multiple TV channels and the JioCinema streaming app under its media arm Viacom18, Reliance aims to strengthen its foothold in the rapidly evolving digital landscape.
Meanwhile, Tata Play has been grappling with challenges in its DTH services, as the burgeoning popularity of OTT platforms continues to impact its business. The company reported a significant loss of ₹105 crore in fiscal 2023, compared to a profit of ₹68.6 crore in the previous year, with revenue declining by 5%.
In a related development, Reliance is on the verge of merging its India media business with Disney, where it is expected to hold a majority stake of 51%-54%. This merger, valued at $3.5 billion for Disney’s Indian operations, is set to create one of the largest media entities in India, with far-reaching implications for the country’s sports streaming rights market, potentially positioning Reliance to secure exclusive cricket rights across all formats.
Sources By Agencies
