Disney in talks with Adani, Maran to sell India business
Walt Disney Co. is said to be in early talks with Indian billionaires Gautam Adani and Kalanithi Maran, as well as private equity firms, to sell its streaming and television business in India. The entertainment giant is exploring various options, such as selling a portion of its Indian operations or a combination of assets from the unit. However, these discussions are still in the initial stages and may not necessarily lead to a deal.
There is competitive pressure from Reliance's JioCinema
Disney has been facing increased competition in India due to the rise of Reliance Industries's streaming platform JioCinema, operated by Asia's wealthiest individual, Mukesh Ambani. Ambani has been promoting his streaming platform by providing free access to the Indian Premier League cricket tournament, the digital rights of which were previously held by Disney. This strategy has resulted in a significant loss of subscribers for Disney's India streaming operations.
Financial performance of Disney's India streaming operations is being evaluated
Last year, Disney's India streaming operations, which were its largest globally by users, reported a loss of $41.5 million on revenue of $390 million for the year ending March 2022. In an effort to turn things around in the country, Disney is now streaming the 2023 ICC Mens Cricket World Cup for free on smartphones. The company hopes this approach will increase advertising revenue and counterbalance the effects of losing subscribers.
Potential buyers and their interests are being considered
A potential acquisition could benefit Maran's broadcasting company, Sun TV Network Ltd., while for the Adani Group, it could aid in expanding their recently acquired New Delhi Television Ltd. Both parties are reportedly considering the deal, but discussions remain at a very preliminary stage. With major global brands eager to tap into India's massive consumer base, advertising slots are being sold at $3,600 per second.
