According to reports, Walt Disney is in exploratory talks with potential investors for its India streaming and television operations.
Billionaires Gautam Adani and Kalanithi Maran are among the candidates.
Alternatives under consideration
Given that the corporation is examining a variety of options, Disney’s senior executives have evaluated the interest of private equity investors.
This might entail selling a portion of the Indian operations or combining the unit’s assets, such as sports rights and the streaming service Disney Hotstar.
It has also been considering strategic options for its India company, such as an outright sale or the formation of a joint venture.
All of this comes after it lost the streaming rights to the IPL competition to Viacom18 Media, a joint venture between Reliance, Paramount Worldwide, and Uday Shankar’s investment business Bodhi Tree Systems.
If Maran’s Sun TV acquires the company, it will be able to extend its recently acquired New Delhi Television.
Deliberations are still in their early stages, and a deal may not be reached.
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Ambani’s Impact on the Game
The discussions surrounding the sale of Disney’s India subsidiary demonstrate how market dynamics have been altered since Ambani’s company purchased the streaming rights to IPL for $2.7 billion and chose to broadcast it for free earlier this year.
Ambani gained another triumph when he secured a multi-year agreement to broadcast HBO and other programming previously owned by Disney.
Disney is not going away.
Disney has followed Reliance’s lead and is now streaming the Cricket World Cup in India for free.
That appears to be an attempt to recoup some subscribers, even if it means surrendering money in the cricket-crazed country.
Nevertheless, it is also likely to benefit from the fact that major worldwide companies are lined up to capture a portion of the country’s vast consumer base.
Advertising space is already being sold for $3,600 per second.
Disney Star, which has exclusive TV broadcast rights for the event in India, announced a partnership with 26 sponsors, including Booking.com BV and beverage major Diageo Plc.
A significant consumer base
Cricket is by far the most popular sport in the country, generating more than $1.5 billion in sponsorship and media spending each year, accounting for over 85% of all sports-related spending in the country!
It just goes to demonstrate why, despite dealing with dwindling subscriber numbers after losing the streaming rights to the IPL, Disney Star hasn’t given up on the entire cricket industry, obtaining television rights through 2027.
It agreed to license the television rights for International Cricket Council men’s matches to ZEE Entertainment last year. For four years, with digital rights retained by Disney Hotstar.