Disney is searching for potential buyers for its digital and TV business in the country. According to reports, Disney has engaged in discussions with various entities, including a U.S. based private equity firm Blackstone, a wealthy individual named Gautam Adani, and the owner of Sun TV Network, Kalanithi Maran, to sell a portion of its controlling stake. In a recent report, it has been suggested that Disney’s main rival, Reliance, is considering the possibility of purchasing the entire business.
A recent report from Bloomberg indicates that Reliance is getting close to finalizing a deal that involves a combination of cash and stock to acquire Disney’s operations in India. This acquisition is estimated to be worth approximately 10 billion dollars, although the report mentions that Reliance might value the assets at a slightly lower range, somewhere between seven billion dollars and 8 billion dollars. Furthermore, the report suggests that an official announcement regarding this transaction could occur as early as the upcoming month, but it’s essential to note that a final decision has not been confirmed yet.
Disney’s business in India, including the Disney+ Hotstar streaming service and Star India, was its most significant operation in terms of users last year on a global scale. However, when JioCinema entered the market and provided free access to the IPL cricket tournament, it created challenges for Disney. Disney had previously held the digital streaming rights for the IPL. Despite its significant revenue of 390 million dollars for the fiscal year ending in March 2022, the company experienced a loss of 41.5 million dollars during that period.
During this time, many shows that were originally accessible on Disney+ Hotstar became available on JioCinema. In contrast to Disney+ Hotstar, JioCinema’s content library expanded to include shows from HBO, Warner Bros and Max Originals. Additionally, JioCinema emerged as the preferred platform for watching the FIFA World Cup held the previous year.
Disney+ Hotstar made a smart decision by letting people watch the ongoing ICC Cricket World Cup 2023 matches for free on mobile phones. They also added a few new things to make users more interested. At the same time, Jio introduced data packages that lets people watch the matches on the platform.
