Disney Selling Off Indian Operations: A $10 Billion Deal in the Works with Reliance Industries
Reliance Industries Valuing Disney’s Indian Assets Lower During Ongoing Disney Selling Off Deal
According to source, Disney selling off its lucrative Indian operations, with an estimated value of around $10 billion through advanced negotiations with Indian market rival Reliance Industries, favoring a comprehensive acquisition over a segmented approach.
Despite prior discussions involving various entities like billionaire Gautam Adani, Kalanithi Maran, and private equity firm Blackstone, Disney selling off a controlling stake in its Indian operations to Reliance Industries, led by Mukesh Ambani. Nevertheless, Reliance evaluates Disney’s Indian assets at a lower estimated worth ranging from $7 to $8 billion, compared to the earlier estimate of $15 to $16 billion.
While the finalization of the Disney selling off deal is anticipated in November 2023, a definite decision is still pending, and both parties have maintained a discreet stance on these ongoing developments. The acquisition could potentially impact the over-the-top (OTT) industry by offering Disney content for free, potentially impeding the growth of subscription video-on-demand revenue.
Regulatory Challenges and Potential Cost Savings Loom as Disney Selling Off Indian Operations
Moreover, Disney selling off its Indian operations raises concerns about potential regulatory resistance, primarily due to the significant overlap between Reliance-owned TV18 Broadcast and Disney. To gain regulatory approval, this overlap might require the closure of certain channels. Disney’s acclaimed Disney+ Hotstar streaming service, known for its fusion of original content with Hotstar’s extensive library, has firmly established itself as a leading player in the Indian streaming market following its launch in April 2020.
While the exact financial consequences of Disney selling off decision are yet to be fully gauged, it holds the potential to lead to significant long-term cost savings for the entertainment giant.