In a groundbreaking move that could reshape the dynamics of the Indian TV distribution industry, Reliance Industries, led by Mukesh Ambani, is in talks to acquire Walt Disney’s 29.8 percent stake in Tata Play. This strategic move aligns with Reliance’s ambitious plans to strengthen its presence in the television distribution sector in the country.

Tata Play, a satellite television broadcaster, is currently owned by Tata Sons, the holding company of the Tata Group, with a 50.2 percent stake, and Walt Disney holding the remaining 29.8 percent. If successful, this deal would mark the first-time collaboration between Tata Group and Reliance, with Jio Cinema potentially expanding its footprint on the Tata Play platform.

The proposed acquisition comes amid Disney’s exploration of options to exit its investment in Tata Play, initially planned during Tata Play’s IPO. However, the IPO delay has prompted Disney to consider alternative routes, and discussions with Reliance are now at the forefront.

Spokespersons for Reliance, Disney, and Tata Sons have declined to comment on the ongoing talks. The deal, if finalized, would see Reliance potentially making the entire content library of Jio Cinema available to Tata Play customers, creating a robust and diverse entertainment platform.

Sources familiar with the situation suggest that discussions between Reliance and Tata Play present a unique opportunity for both companies. Reliance’s move into the TV distribution sector could open avenues for synergies and collaborative ventures, fostering innovation in the rapidly evolving entertainment landscape.

The valuation of Disney’s stake in Tata Play is still under assessment, with the Tata company facing challenges from stiff competition posed by streaming giants like Netflix, Hotstar, Jio Cinema, and Amazon Prime. Tata Play reported a loss of Rs 105 crore in the financial year ending March 2023, coupled with an income of Rs 4,499 crore. In the previous financial year, the company’s income was Rs 4,741 crore, with a profit of Rs 68.60 crore.

The Wall Street Journal recently reported that Walt Disney has reached a preliminary agreement to sell a 60 percent stake in its TV, content, and OTT business in India to Reliance at a valuation of $3.9 billion. The official announcement of this deal is expected after the completion of legal due diligence.

According to the Memorandum of Understanding (MoU) between the companies, Disney is poised to hold a 40 percent stake in the Indian business, with Reliance holding 51 percent and Bodhi Tree, the company of James Monk and former Disney India chief Uday Shankar, holding a 9 percent stake in the TV network and OTT business.

The valuation of Disney’s Indian business faced a significant decline following the termination of its $1.4 billion cricket broadcast rights deal with Zee Entertainment Enterprises. As the negotiations continue, the industry awaits a transformative deal that could reshape the television distribution landscape in India.