Tata Group Considers Acquisition of Disney’s Stake in Tata Play
- ByStartupStory | March 15, 2024
In a strategic move aimed at consolidating its position in India’s rapidly evolving media and entertainment landscape, Tata Group is reportedly eyeing the acquisition of Walt Disney Co.’s stake in Tata Play Ltd, according to sources familiar with the matter.
The potential acquisition, still in its early stages, underscores Tata Group’s ambition to secure complete ownership of the direct-to-home (DTH) player, Tata Play. If finalized, the deal could value Tata Play at $1 billion or higher, Bloomberg reported.
Tata Sky, initially launched in 2004 as an 80:20 joint venture between Tata Sons and Network Digital Distribution Services FZ-LLC (NDDS), underwent a rebranding in 2022, becoming Tata Play. Following Disney’s acquisition of 21st Century Fox, the conglomerate inherited a substantial minority stake in Tata Play.
With the recent expansion of Tata Play’s content offerings, including the addition of Apple TV+ to its streaming platform, Tata Group aims to bolster its presence in the competitive streaming market.
The development comes amid a flurry of activity in the Indian media sector, with Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18), and The Walt Disney Company forging agreements to establish a joint venture. This venture will merge the businesses of Viacom18 and Star India Private Limited, creating a formidable entity with over 100 TV channels and two prominent over-the-top (OTT) platforms – Disney+ Hotstar and JioCinema.
Expected to be finalized between October and December this year or in the first four months of 2025, the merger will grant the new entity exclusive rights to distribute Disney content in India, in addition to Reliance and Viacom18-owned sports content. Industry analysts anticipate that the merged entity will disrupt India’s OTT landscape, boasting a diverse content portfolio capable of catering to various viewer segments.
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