Disney Eyes Potential Sale of Indian Streaming Business: Report

The multinational entertainment behemoth, Walt Disney Company DIS, is reportedly holding preliminary talks with potential buyers for its India streaming and television business.

Senior executives from the American entertainment powerhouse are reportedly discussing with potential buyers, including billionaires Gautam Adani and Kalanithi Maran and various private equity funds.

The company examines multiple alternatives, including selling part of the Indian operations or a combination of the unit's assets, including sports rights and regional streaming service Disney+ Hotstar, reported Bloomberg.

Previously, Disney engaged in discussions regarding asset sales with Reliance Industries Ltd., controlled by Asia's wealthiest individual, Mukesh Ambani.

The development followed as the unit lost its streaming rights to the Indian Premier League cricket tournament.

For Maran, acquiring Disney's assets could bolster his broadcast firm, Sun TV Network Ltd. Conversely, the Adani Group might use this to augment its recently procured New Delhi Television Ltd.

The current discussions surrounding Disney's Indian assets sale highlight the seismic shift in market dynamics, predominantly since Ambani's conglomerate procured streaming rights for the Indian Premier League at a whopping $2.7 billion, choosing to broadcast it without any charges. 

In a countermove, Disney is currently broadcasting the Cricket World Cup in India free of charge, targeting a resurgence in subscribership, even if it entails forgoing revenue in the cricket-passionate Indian territory.

Nevertheless, Disney seems poised for a surge, thanks to global brands vying to tap into India's vast consumer demographic. With ad slots priced at $3,600 per second, Disney Star collaborates with major brands for the ongoing cricket event.

Despite losing Indian Premier League streaming rights, Disney Star remains steadfast in the cricket domain, securing television rights that extend until 2027, the report noted.

Price Action: DIS shares are trading higher by 0.09% at $80.88 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.