Blockbuster Deal Struck As Media Giant Sells Off Satellite TV Stake
In a billion-dollar transaction set to shake up the entertainment industry, one of Hollywood's biggest names has offloaded its share in a popular Indian cable provider. Reports suggest Walt Disney has finalized an agreement to sell off the stake it holds in Tata Play, valuing the satellite TV service at close to $1 billion.
Disney had obtained its portion of Tata Play from its massive acquisition of 21st Century Fox assets in India back in 2017. However, with intentions to concentrate on finalizing its mega-merger with Indian conglomerate Reliance, Disney saw this as an ideal time to exit the joint venture. The business partnership between Disney and Tata's dated back several years after their brands first combined resources.
Last month, Tata Sons – the parent firm of Indian conglomerate Tata Group, raised its holding in Tata Play to 70% after purchasing a 10% slice from Temasek, Singapore's sovereign wealth fund. This moved Tata's controlling share up while reducing Disney's involvement to 30%. Following the latest sale, reports hint Tata may assume full ownership of the satellite TV provider.
Industry experts view Disney's timely exit as a strategic move that allows them to direct all focus towards establishing an $8.5 billion entertainment powerhouse with Reliance. Once completed, this mammoth venture is anticipated to pull ahead of rivals in India's booming media landscape. For Tata, regaining complete control of their TV service presents new opportunities to scale the business under their leadership.
