Behemoths Tata, Reliance To Ink A Big Deal! RIL May BUY 29.8% Stake Of Tata Play From Disney; Report

Reliance Industries, led by billionaire Mukesh Ambani, is reportedly in talks to acquire Walt Disney's 29.8% stake in Tata Play, a satellite TV provider. This potential collaboration could mark the first-ever partnership between the Tata Group and Reliance, with the former looking to offload its loss-making venture.

Sources familiar with the matter revealed to Business Standard that Reliance aims to purchase Disney's stake in Tata Play to expand its media presence. The conglomerate plans to integrate its JioCinema content seamlessly into Tata Play's offerings, providing a comprehensive entertainment experience for the satellite TV provider's customers.

Currently, bankers are evaluating the value of Disney's stake in Tata Play, which not only provides satellite TV services but also grants access to video streaming platforms. The move aligns with Reliance's broader strategy to strengthen its position in India's $28-billion media and entertainment market.

Tata Play reported a significant financial setback in fiscal 2023, swinging from a profit of Rs 68.6 crore to a loss of Rs 105 crore. Its revenues also witnessed a 5% decline during the same period. The company had confidentially filed for a $300 million initial public offering (IPO) over a year ago, as reported by the Economic Times.

Reliance's media unit, Viacom18, already operates multiple TV channels and the JioCinema streaming app. The potential acquisition of Disney's stake in Tata Play would further consolidate Reliance's presence in the rapidly evolving digital entertainment landscape.

While Reliance and Disney have yet to respond to Reuters' request for comments, a Tata Play spokesperson declined to provide any information. This development comes amid reports that Reliance is nearing a merger of its India media business with Disney, in which it would hold a 51%-54% stake, valuing Disney's Indian operations at $3.5 billion.

The joint venture Bodhi Tree, formed by James Murdoch and former top Disney executive Uday Shankar, is also set to play a role. Bodhi Tree is reportedly eyeing a stake of approximately 9% in the newly merged entity, with Disney retaining around 40%.

Currently, Tata Sons holds the majority stake of 50.2% in Tata Play, while Singapore's Temasek owns about 20%. Disney's stake completes the ownership puzzle, making it a key player in the ongoing negotiations.

This potential acquisition aligns with Reliance's broader vision for a comprehensive media and entertainment conglomerate. The move not only highlights the company's plans but also signifies the dynamic shifts within the industry as major players seek strategic partnerships to navigate the digital landscape.

As the negotiations unfold, industry experts and stakeholders eagerly await further details on what could potentially be a groundbreaking collaboration between two of India's corporate giants - Reliance Industries and the Tata Group.

*Inputs from Reuters*