The Walt Disney Company is in the early stages of discussions with potential buyers for its streaming and television operations in India. As per a Bloomberg report, the likes of Gautam Adani and Kalanithi Maran have been approached by the media company.
Senior executives from Disney have also been engaging with private equity funds to explore various options, which may include selling a portion of its Indian operations or a comprehensive package involving assets such as sports rights and the regional streaming service Disney+ Hotstar. Reports also suggest that asset-sale negotiations have also taken place with Mukesh Ambani’s Reliance Industries.
Back in July, the Wall Street Journal reported Disney exploring strategic options for its business in India, reflecting the shift in Star India’s fortunes following Disney’s acquisition of Fox’s entertainment assets. The report said options could involve a joint venture or even a sale.
As Disney and its competitors navigate a costly transition towards streaming platforms, they are increasingly shifting away from traditional TV enterprises. In a bid to make that transition happen, in 2019, Disney paid $71.3 billion to acquire the entertainment assets of 21st Century Fox. At the time, Star India stood out as one of Fox’s prized possessions, playing a crucial role in Disney’s strategy to expand its nascent streaming business worldwide.
This acquisition granted Disney the broadcasting and streaming rights for the Indian Premier League cricket matches, along with numerous TV channels in multiple languages and a stake in a Bollywood movie production company.
Hotstar, once proud of its impressive milestone of 150 million monthly active users, was experiencing continuous growth, largely driven by its exclusive streaming rights to the Indian Premier League (IPL).
However, this growing user base turned into a significant challenge when Hotstar lost the streaming rights of IPL to Reliance’s JioCinema. This setback posed a considerable obstacle for Disney+ Hotstar, as the loss of such a marquee sporting event meant a potential decline in user engagement and a risk of losing a substantial portion of their dedicated audience.