India’s Reliance eyes Disney’s stake in Tata Play

India’s Reliance Industries, owned by billionaire Mukesh Ambani, is negotiating to acquire Walt Disney’s 29.8 per cent stake in Tata Play, a satellite TV provider, to strengthen Reliance’s media footprint, Reuters reported on Thursday.

The deal would allow Reliance to provide all JioCinema content to Tata Play’s customer base, according to sources cited by the Business Standard newspaper. 

Bankers are currently assessing the value of Disney’s stake in Tata Play, a provider of video streaming services. A successful negotiation would mark the first partnership between the Tata Group and Reliance.

Reliance, which operates several TV channels and the JioCinema streaming app via its Viacom18 media unit, aims to consolidate its position in India’s $28 billion media and entertainment industry.

In fiscal 2023, Tata Play reported a loss of 1.05 billion rupees (around $13 million), a downturn from its previous profit of 686 million rupees, with revenues also decreasing by 5 per cent. 

The company, supported by Temasek, confidentially submitted a $300 million IPO over a year ago, according to the Economic Times.

Neither Reliance nor Disney responded promptly to requests for comments from Reuters, and a Tata Play spokesperson chose not to comment.

Earlier this month, Reuters reported that Reliance is on the verge of consolidating its Indian media business with Disney, holding a 51–54 per cent stake, which estimates the value of Disney’s operations in India at $3.5 billion. 

Bodhi Tree, a collaborative venture between James Murdoch and ex-Disney executive Uday Shankar, plans to acquire an approximately 9 per cent stake in the newly-merged entity. Disney will retain about 40 per cent.

Tata Sons is the majority shareholder in Tata Play, with a 50.2 per cent stake. Singapore’s Temasek owns roughly 20%, with Disney holding the remaining shares.