Reliance-backed Viacom18 has reached an agreement to buy 60% of Disney’s India unit, WSJ reported Thursday citing unnamed sources, creating a pathway for the Indian conglomerate to form a $10 billion media giant in the South Asian market.
The deal, which WSJ says will close this month, values Disney’s India unit at $3.9 billion, the report said, less than half of what Disney had originally hoped. Earlier this week, Reliance declined to comment on its engagement with Disney.
In 2019, Disney acquired 21st Century Fox’s entertainment assets for $71.3 billion, a move significantly bolstered by the inclusion of Star India.
The deal was integral to Disney’s global streaming expansion, handing it broadcast and streaming rights to the Indian Premier League cricket matches, a multitude of multilingual TV channels and an interest in a Bollywood film production company. At the time of acquisition, Star’s Hotstar had amassed about 150 million monthly active users.
While Hotstar dominated the Indian video streaming landscape for several more quarters, things have tapered off since as Reliance-backed Viacom18 has grown in popularity after securing the five-year rights to stream IPL cricket matches for about $3 billion. Disney paid $3 billion for the same five-year rights, but for broadcasting the content on TV.
Reliance has poached many top leaders and engineering talent to ramp up JioCinema in the last year, and has populated the on-demand streaming service with premium content from HBO and NBC.
techcrunch.com
