Walt Disney To Sell Stake in Tata Play To Tata Group

Disney to sell its stake in Tata Play (Indian pay TV) to Tata Group for $1 billion to focus on merging its Indian unit with Viacom18, creating an $8.5 billion media giant.

Walt Disney Co. has finalized an agreement to sell its minority stake in Tata Play Ltd., a subscription television broadcaster, to Tata Group. This move allows the US media giant to concentrate on merging its Indian unit with Viacom 18 Media Pvt, which is owned by billionaire Mukesh Ambani. The transaction values Tata Play at approximately $1 billion, according to multiple reports and sources.

By acquiring Disney's 29.8% stake, Tata Group now holds full control of Tata Play. This development comes as India’s media landscape undergoes significant changes. In late February, Disney signed a binding agreement to merge its India unit with Viacom 18 Media Pvt, resulting in the creation of an $8.5 billion entertainment behemoth. This merger will cater to 750 million viewers, solidifying its dominance in one of the world's most populous countries.

Tata Play, established in 2001 as a joint venture between Tata Group and TFCF Corp. (formerly Twenty-First Century Fox), offers pay television services via set-top boxes and over-the-top video streaming through its app. It boasts a nationwide presence with 23 million connections. Tata Play confidentially filed for a domestic initial public offering in 2022, though the listing has yet to occur.

Earlier this year, Tata Group increased its stake in Tata Play to slightly over 70% by purchasing Temasek Holding Pte’s shares. Temasek had initially invested in Tata Sky (as Tata Play was formerly known) in 2007.