Media conglomerate Walt Disney is reportedly in preliminary discussions with prospective buyers for its streaming and television business in India, with prominent business figures like Gautam Adani and Kalanithi Maran’s Sun Group in the mix. According to sources cited by Bloomberg, high-ranking executives from Disney have reached out to private equity funds to gauge interest.
This development comes as Disney explores various strategic options, which could involve divesting a portion of its Indian operations or a combination of unit assets. These assets might include sports broadcasting rights and the regional streaming service Disney+ Hotstar.
Disney is also said to have explored the possibility of selling or forming a joint venture with its Indian business after it lost streaming rights for the Indian Premier League cricket tournament to Viacom18 Media, a joint venture between Reliance Industries, Paramount Global, and Uday Shankar’s investment firm Bodhi Tree Systems.
While discussions are at an early stage, the potential acquisition could complement Sun TV Network’s broadcasting business or aid the expansion of the Adani Group, which recently acquired New Delhi Television Ltd (NDTV). It’s important to note that these discussions are in the preliminary phase, and there is no assurance that a deal will materialize.
The ongoing talks regarding Disney’s India unit reflect the shifting dynamics in the market following Mukesh Ambani’s Reliance Industries securing the streaming rights to the Indian Premier League for a significant $2.7 billion and offering it for free. Disney has adopted a similar strategy, streaming the Cricket World Cup in India for free to regain subscribers, even if it means sacrificing revenue in this cricket-crazy nation.
However, Disney is poised to benefit from marquee international brands looking to tap into India’s vast consumer base. Advertising slots for the ongoing Cricket World Cup are reportedly being sold at a rate of $3,600 per second. Disney Star, which holds exclusive TV broadcast rights for the event in India, recently announced partnerships with 26 sponsors, including major names like Booking.com BV and Diageo Plc.
According to research by Jefferies LLC, cricket commands over $1.5 billion in annual sponsorship and media spending in India, accounting for approximately 85% of all sports-related spending in the country. Despite subscriber challenges, Disney Star retains television rights for cricket until 2027.
