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Disney Reportedly Selling Stake in Tata Group’s $1 Billion Tata Play

Walt Disney Co. has finalized an agreement to sell its minority stake in Tata Play Ltd., a subscription television broadcaster, to Tata Group. This strategic move enables the US media conglomerate to concentrate on merging its Indian unit with billionaire Mukesh Ambani’s media enterprise. According to sources familiar with the matter, this transaction values Tata Play Ltd. at approximately $1 billion. Tata Group now fully controls Tata Play after acquiring Disney’s 29.8% stake, as per individuals who requested anonymity due to the private nature of the information.

This deal occurs amidst significant transformations in India’s media industry. In late February, Disney entered into a binding agreement to merge its Indian operations with Viacom 18 Media Pvt., forming an $8.5 billion entertainment behemoth that will cater to 750 million viewers, positioning it as a dominant player in one of the world’s most populous nations.

Originally established in 2001 as a joint venture between Tata Group and TFCF Corp. (formerly Twenty-First Century Fox), Tata Play offers pay television through set-top boxes and over-the-top video streaming via its app, boasting a widespread presence with 23 million connections across India, as noted on Tata Sons’ website. Despite filing confidentially for a domestic initial public offering in 2022, the listing has yet to materialize.

Earlier this year, Tata Group increased its stake in Tata Play to just over 70% by purchasing shares from Temasek Holding Pte. Temasek initially invested in Tata Play, then known as Tata Sky, in 2007. Representatives from Tata Group, Disney, and Temasek have declined to comment on the transaction.

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Author:- Apoorva Arora

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