Disney announces talks with Adani, Sun TV to sell assets in India

Walt Disney Co. is in preliminary talks with potential buyers for its streaming TV business in India, including billionaires Gautam Adani and Kalanithi Maran, according to people familiar with the matter.

Senior executives at the US entertainment giant also said the company is exploring various options, including selling part of its India operations or combining the division’s assets, including sports rights and regional streaming service Disney Hotstar. We are gauging the interest of private equity funds in light of the The people spoke on condition of anonymity because the discussions are private.

Bloomberg News earlier reported that the company is already in talks to sell assets to Reliance Industries, which is run by Asia’s richest man, Mukesh Ambani.

Bloomberg reported in July that Disney was considering strategic options such as selling its India business completely or forming a joint venture after losing streaming rights to the Indian Premier League cricket tournament to Viacom18 Media. The news reported. Viacom is a joint venture between Reliance, Paramount Global, and Uday Shankar’s investment company Bodhi Tree Systems.

The potential acquisition could complement Mr. Maran’s broadcasting company, Sun Television Network Ltd., and could be a key move for the Adani group as it expands its newly acquired New Delhi Television Ltd., people familiar with the matter said. There is a possibility of a connection. He added that deliberations are still at a very preliminary stage and any agreement may not materialize.

A representative for Disney in India declined to comment. Sun Television Network Group Chief Financial Officer SL Narayanan said the group does not comment on market rumors and speculation. An Adani spokesperson also said the company does not comment on market speculation.

The debate over the sale of Disney’s India unit shows how turbulent market dynamics have become since Ambani’s conglomerate acquired the streaming rights to the Indian Premier League for $2.7 billion earlier this year, opting to go free-to-air. ing. Mr. Ambani scored another victory by signing a multi-year deal to broadcast Warner Bros. Discovery’s HBO and other content he previously had with Disney.

Disney is currently leveraging Reliance’s strategy to stream the ongoing Cricket World Cup in India for free. The move is aimed at winning back some subscribers at the cost of revenue in the cricket-mad nation of 1.4 billion people.

But with ad space selling for $3,600 per second and leading global brands lining up to tap India’s huge consumer base, Disney is likely to continue to gain momentum. Disney Star, which holds the exclusive television rights to the event in India, said in a statement on Wednesday that it has partnered with 26 sponsors, including heavyweights such as Booking.com BV and liquor company Diageo.

Cricket is by far the most popular sport in the South Asian country, attracting more than $1.5 billion in sponsorship and media spending each year, approximately 85% of the country’s sports-related spending, according to research by Jefferies LLC. corresponds to

Disney Star is battling declining subscriber numbers after losing streaming rights to the Indian Premier League, but the media group is not selling its entire cricket business and has secured TV rights until 2027. ing.

Last year, Disney Star agreed to license the television rights for International Cricket Council men’s matches to ZEE Entertainment Enterprises Ltd. for four years, with Disney Hotstar retaining the digital rights.

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