Disney announces talks with Adani, Sun TV to sell assets in India

MUMBAI: Walt Disney Co. is in preliminary talks with potential buyers for its streaming TV business in India, including billionaires Gautam Adani and Kalanithi Maran, according to people familiar with the matter.

Senior executives at the US entertainment giant also said the company is exploring various options, including selling part of its India operations or combining the division’s assets, including sports rights and regional streaming service Disney+Hotstar. We are gauging the interest of private equity funds in light of the The people spoke on condition of anonymity because the discussions are private.

Bloomberg News earlier reported that the company is already in talks to sell its assets to Reliance Industries, which is run by Mukesh Ambani, Asia’s richest man.

Bloomberg News reported in July that Disney was considering strategic options, including a complete sale of its India operations or forming a joint venture, after losing streaming rights to the Indian Premier League cricket tournament to Viacom18 Media. Reported. Viacom is a joint venture between Reliance, Paramount Global, and Uday Shankar’s investment company Bodhi Tree Systems.

The potential acquisition could complement Mr. Maran’s broadcasting company, Sun Television Network, and could lead to an expansion for the Adani group with its newly acquired New Delhi Television, people said. . He added that deliberations are still at a very preliminary stage and any agreement may not materialize.

A representative for Disney in India declined to comment. Sun Television Network Group Chief Financial Officer SL Narayanan said the group does not comment on market rumors and speculation. An Adani spokesperson also said the company does not comment on market speculation.

The debate over the sale of Disney’s India unit shows how turbulent market dynamics have become since Ambani’s conglomerate acquired the streaming rights to the Indian Premier League for $2.7 billion earlier this year, opting to go free-to-air. ing. Ambani scored another win by signing a multi-year deal to carry Warner Bros. Discovery’s HBO and other content he previously had with Disney.

Disney is currently leveraging Reliance’s strategy to stream the ongoing Cricket World Cup in India for free. The move is aimed at winning back some subscribers at the cost of revenue in the cricket-mad nation of 1.4 billion people.

Disney Star, which holds the exclusive television rights to the event in India, said in a statement on Wednesday that it has partnered with 26 sponsors, including heavyweights such as Booking.com BV and liquor company Diageo.

Cricket is by far the most popular sport in the South Asian country, attracting more than $1.5 billion in sponsorship and media spending each year, more than any other sports-related spending in the country, according to research by Jefferies LLC. This corresponds to approximately 85% of the total.

Disney Star is battling declining subscriber numbers after losing streaming rights to the Indian Premier League, but the media group is not selling its entire cricket business and has secured TV rights until 2027. ing.

Last year, Disney Star agreed to license the television rights for International Cricket Council men’s matches to ZEE Entertainment Enterprises for four years, with Disney+ Hotstar retaining the digital rights.