Disney to Sell 30% Stake in Tata Play to Tata Group, Valuing Company at $1 Billion

Walt Disney Co. has struck a deal to sell its 30% minority stake in Tata Play Ltd. to Tata Group, valuing the company at approximately $1 billion. This move allows Disney to focus on merging its Indian unit with Mukesh Ambani’s Viacom 18 Media Pvt, forming an $8.5 billion entertainment giant.

Tata Group’s Full Control

Tata Group will gain full control of Tata Play, a subscription television broadcaster, by acquiring Disney’s 29.8% stake. Earlier this year, Tata Group increased its stake to slightly over 70% by buying out Temasek Holding Pte’s shares.

Tata Play’s Background

Incorporated in 2001 as a joint venture between Tata Group and TFCF Corp. (formerly Twenty-First Century Fox), Tata Play offers pay television services via set-top boxes and over-the-top streaming through its app. It has a nationwide footprint of 23 million connections.

Media Landscape Shakeup

This deal is part of a larger transformation in India’s media landscape. Disney’s binding agreement to combine its Indian unit with Viacom 18 Media Pvt will create a media powerhouse with 750 million viewers.