Walt Disney in Discussions with RIL for Potential Sale of its Streaming Business in India

20 Sep, 2023

Walt Disney in Discussions with RIL for Potential Sale of its Streaming Business in India

Walt Disney Co. has initiated preliminary discussions with potential buyers for its Indian streaming and television business, which includes Mukesh Ambani's Reliance Industries Ltd., according to individuals with knowledge of the situation.

The American entertainment behemoth has explored various possibilities with prospective suitors, ranging from a comprehensive acquisition of Disney Star's entire business to a more fragmented transaction that might encompass select assets, such as sports rights and the regional streaming service Disney+ Hotstar.

Disney has been contemplating strategic alternatives for this enterprise, contemplating options that include an outright sale or the establishment of a collaborative enterprise. This was reported by Bloomberg News back in July, following the loss of streaming rights for the Indian Premier League cricket tournament by the Indian unit to Viacom18 Media Pvt., a collaboration between Paramount Global and Reliance. At that time, Disney had approached Reliance regarding the potential purchase of a stake in the business, as per an individual knowledgeable about the matter.

These discussions are still ongoing and may not necessarily result in a transaction, as the sources have requested anonymity due to the confidential nature of the information. Disney has the option to retain these assets for an extended period, they have added. A spokesperson for Disney has chosen not to provide any comment on the matter.

In response, a Reliance spokesperson stated that the company continually evaluates various opportunities and will disclose the required information when necessary, while declining to elaborate further.

Despite Disney Star experiencing a decrease in subscriber numbers subsequent to the loss of IPL streaming rights, it has not relinquished its entire cricket-related business. It has secured television rights until 2027. Last year, it entered into an agreement to license the television rights for International Cricket Council men's matches to ZEE Entertainment Enterprises Ltd. for four years, with Disney+ Hotstar retaining the digital rights.

JioCinema, a streaming service supported by Reliance, witnessed an impressive 32 million concurrent viewers in May during the IPL final, which was accessible for free on the platform. Following a multi-year deal to broadcast exclusive content from Warner Bros Discovery Inc. in India, the venture has started charging for certain content on the platform.