Reliance may acquire 30% stake in Tata Play from Disney
Reliance Industries (RIL) is said to be in talks to acquire a 29.8% stake in Tata Play, a satellite TV and streaming service. The stake is currently owned by Walt Disney. The acquisition will expand RIL's presence in the television distribution sector, potentially creating a media powerhouse in India. Tata Sons, the holding company of Tata Group, currently owns a majority stake of 50.2% in Tata Play.
Disney willing to sell entire stake in Tata Play
Mint reported earlier in 2022 that Walt Disney plans to sell its entire stake in Tata Play during its proposed initial share sale. The decision comes as Disney seeks to concentrate on broadcast and streaming service businesses in India. The potential acquisition of a stake in Tata Play by RIL takes place amidst merger discussions between Disney and Reliance. As per rumors, Reliance might invest $1.5 billion for 60% stake, leaving Disney with the remaining 40% in the merged entity.
Reliance-Disney merger comes amid Sony-Zee fallout
The merger between Reliance and Disney is the first such in India's media sector following the failed deal between Sony and Zee. Sony didn't want Zee's MD & CEO, Punit Goenka, to lead the merged entity as he faces probe into allegations of fund diversion. Sony terminated the merger on January 22, citing unmet closing conditions and demanded $90 million termination fee from Zee. The case has now reached NCLT. The tribunal has asked Sony to respond in three weeks.