Disney to sell minority stake in Tata Play to Tata Group, valued at USD 1 billion

In a significant move in the media and entertainment industry, Walt Disney has agreed to sell its minority stake in Tata Play to Tata Group. According to the reports, the deal is closed at a $1 billion valuation suggests a substantial investment by Tata Group. The deal indicates a strategic shift, possibly for both companies. 

🚨 Disney to sell minority stake in Tata Play to Tata Group, deal valued at $1 billion. pic.twitter.com/yH5MJkcFy0

— Bharat Tech & Infra (@BharatTechIND) May 23, 2024

According to the people who are aware of the matter, Walt Disney Co. has struck a deal with television broadcaster Tata Group, allowing the US media giant to focus on the merger of its Indian unit with billionaire Mukesh Ambani.

The deal which is valued at $1 billion, gives Tata Group full control of the TV platform after buying the 29.8% stake from Disney. It is worth to be noting that the binding agreement between both companies in February to combine its India unit with Viacom 18 Media Pvt.

Adding to this, Tata Sons, last month, increased its stake in Tata Play to 70% by purchasing a 10% stake from Singapore state investment Temasek for approximately $100 million.

In 2001, TFCF Corp., formerly known as Twenty-First Century Fox and Tata Group formed Tata Play, which was subsequently renamed Tata Sky. The company offers over-the-top (OTT) video streaming via its app and paid television via set-top boxes. Disney purchased Star India as part of the 2017 acquisition of 21st Century Fox's Indian holdings, which allowed Disney to buy a stake in Tata Play.

It would be interesting to see how this deal shapes the future direction of Tata Play and Disney's involvement in the Indian market.