Disney reaches pact to sell 60% in India unit to Viacom18

Disney has reportedly agreed to sell 60 per cent of its India business to Viacom 18 at a valuation of $3.9 billion (Rs 33,000 crore), a report said on Thursday. Viacom18 is owned by Reliance Industries Limited (RIL) Chairman Mukesh Ambani.

In December 2023, Reliance Industries and Walt Disney had held extensive talks to merge their Indian entertainment operations. However, the companies did not reach any broad agreement on structures or valuations.

On Thursday, Wall Street Journal reported that Disney has agreed to sell 60 per per cent of its Indian business to Viacom18 and the deal will be sealed by this month. The deal is seen as a significant move in the Indian media and entertainment industry after the Zee-Sony deal failed last month.

In October, reports first surfaced that Reliance was evaluating Disney’s India assets, encompassing the Disney+ Hotstar streaming service and Star India, at a valuation ranging from $7 billion to $8 billion. During the same period, Disney valued these operations at $10 billion.

Earlier this month it was reported that Disney Star and Viacom18 were gearing up to fight the advertising rights in the upcoming Indian Premier League (IPL) 2024. A report in the Economic Times said Disney Star, which will air the IPL matches on its sports channels, is asking for Rs 167 crore and 83 crore for co-presenting and associate sponsorships, respectively, on standard definition (SD) channels.

For HD channels, the broadcaster is seeking Rs 71 crore for co-presenting sponsorship and Rs 35 crore for associate sponsorship.

On the other hand, Viacom18, which will continue to stream IPL matches for free on JioCinema, has kept its advertising rates unchanged to widen its advertiser base. The company had reportedly roped in over 500 advertisers for IPL 2023. Business Today