- ByStartupStory | February 2, 2024
The Walt Disney Company is set to sell 60% of its stake in its India business, Disney Star, to Reliance-backed Viacom18 and Bodhi Tree. The deal follows the signing of a non-binding agreement in December for merging their India units. Sources suggest the agreement could be finalized this month. Disney is expected to retain 40% in the merged entity, valuing Disney Star at $3.9 billion, a significant drop from its initial valuation of $10 billion in July. Viacom18 and Bodhi Tree are also poised to take a stake of around 9% in the new merged entity.
Regarding the potential deal, Disney declined to comment, and Viacom18 has not provided immediate comments. The proposed merger comes at a time when the $10-billion merger between Zee and Sony recently collapsed after two years of efforts. Zee and Sony are now involved in legal disputes over the failed merger, accusing each other of hindering the deal.
Sources indicate that Disney Star had been valued at $4.5 billion, lower than the previously reported $10 billion valuation, influenced by persistent subscriber losses in the streaming platform Hotstar and the potential write-off of the sale of ICC TV rights to Zee for $1.5 billion. The new entity formed by Disney and Reliance is expected to have a turnover of nearly ₹29,000 crore and a combined viewership market share of 35-40% across 115 channels, two video streaming platforms, and two film studios (Star Studios and Jio Studios).
Disney+ Hotstar, with approximately 38 million users, holds the rights for International Cricket Council’s matches in India until 2027, while Reliance’s JioCinema app has the rights for the popular cricket league IPL.
