Private equity firm, Blackstone, is reportedly in talks with Walt Disney Co to explore the acquisition of its Indian streaming and television business. As per reports, both companies have engaged in multiple discussions over the last few weeks.
Blackstone is considering various options, including a partial acquisition involving assets like sports properties, media rights, and the Disney+ Hotstar streaming service. Alternatively, they are exploring the possibility of acquiring the entire portfolio, which encompasses the flagship Star India TV network, OTT services, and a 30 percent stake in Tata Play.
Reports said, Kevin Mayer and Tom Staggs, former Disney executives who were reappointed as advisers by CEO Bob Iger in July are leading these discussions. In their previous stint with Disney, both led Candle, a media group they founded with support from Blackstone.
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.