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.

IPO Plans

Tata Play filed confidentially for a domestic initial public offering in 2022, but the listing has yet to occur.

No Comments from Parties Involved

Representatives from Tata Group, Disney, and Temasek declined to comment on the transaction.