Disney Said To Sell a 30% Stake in Tata Play to Tata Group, Valuing Co At $1 Billion

Tata Play, formerly known as Tata Sky, is a leading Indian direct broadcast satellite television provider offering a wide range of channels and on-demand content. It also provides additional services such as Tata Play Binge, integrating multiple OTT platforms into one subscription. The company has a pan-India footprint of 23 million connections, according to the holding company of the group – Tata Sons.

Disney To Sell its 30% Stake in Tata Play

Walt Disney has finalized a deal to sell its 29.8% minority stake in the subscription television broadcaster Tata Play to the Tata Group according to reports. The transaction values the Tata Play at approximately $1 billion, which will give the Tata Group full control over the platform. This move highlights a significant shift in ownership for Tata Play, which has been a major player in India’s direct broadcast satellite television market.

In late February, Disney signed a binding agreement to merge its India unit with Mukesh Ambani’s Viacom 18 Media Pvt, creating a massive $8.5 billion entertainment entity. This new conglomerate is poised to dominate the Indian media sector, boasting over 750 million viewers. The merger highlights the rapidly evolving landscape of the Indian media industry, with significant consolidation shaping the future of entertainment in the region

Tata Play IPO

In spite of the drop in valuation from its pre-pandemic target of $3 billion to $1 billion, Tata Play remains a key part of the Tata Group, serving as its primary consumer-facing unit in the media and entertainment sector. In 2022, Tata Play has confidentially filed for a domestic initial public offering (IPO), although the listing is yet to occur.

Earlier this year, Tata Group increased its stake in Tata Play to just over 70% by acquiring Temasek Holding Pte’s share. Temasek had initially invested in the company, then known as Tata Sky, in 2007.

Conclusion: The strategic acquisition of Disney’s stake and the increased investment in Tata Play displays the Tata Group’s commitment to strengthening its presence in the media and entertainment sector. Despite the reduced valuation, Tata Play remains a vital component of the Tata group portfolio, highlighting the group’s long-term vision. The pending IPO shows potential future growth and market expansion.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.