Walt Disney announces initial negotiations with Blackstone to acquire stake in Indian television business Disney+Hotstar

Private equity firm Blackstone has held preliminary talks with Walt Disney Co. to acquire a stake in the entertainment company’s Indian unit, two people familiar with the matter told Reuters on Wednesday.

Blackstone is the latest suitor for Disney’s assets in the highly competitive Indian market and has been seeking a sale or joint venture partner for its digital and television businesses.

Blackstone and Disney declined to comment.

Blackstone-backed U.S. media company Candle Media, founded by former Disney executives, led talks between the two sides last week, one of the people said.

Indian newspaper Economic Times first reported the talks early Wednesday. Bloomberg News reported last week that Disney also held talks with Indian billionaire Gautam Adani and Sun Television Network owner Kalanithi Maran.

Disney has been trying to rebuild its streaming business in India by offering cricket for free on smartphones, betting the strategy will boost advertising revenue as subscriber churn accelerates.

Meanwhile, Indian billionaire Mukesh Ambani’s broadcasting arm has lost streaming rights to some major cricket tournaments, including the Indian Premier League and bilateral matches between national cricket teams.

In July, Disney’s Indian streaming service Disney+ Hotstar will begin enforcing a policy that allows premium users to log in from only four devices to limit password sharing in major markets. It was reported.

In May, Disney rival Netflix began telling subscribers in more than 100 countries that they would have to pay extra to share the service with people outside their household.

© Thomson Reuters 2023