The Walt Disney Co.'s holdings in Tata Play will be acquired by the Tata Group in a historic deal that values the over-the-top (OTT) and direct-to-home (DTH) service provider at about $1 billion. With this acquisition, the Tata Group now has total control over Tata Play, which represents a dramatic change in the media landscape of India.

Formerly called Tata Sky, Tata Play was a joint venture between the Tata Group and Disney.

Disney acquired 21st Century Fox's India holdings in 2017, giving it a 29.8% share in Tata Play. With a variety of television and streaming services available to users, the platform has been a significant player in the Indian DTH industry.

Tata Group
Source: Goodreturns

Tata Group Expands Media Presence with Complete Ownership of Tata Play

The deal follows Disney's calculated choice to combine its Indian division with Viacom 18 Media Pvt, forming an entertainment giant valued at $8.5 billion. Disney can focus on this new endeavor, which has the potential to completely transform the Indian entertainment market, by selling its interest in Tata Play.

The agreement shows the Tata Group's dedication to growing its presence in the media and digital industries in addition to giving Tata Play a billion-dollar valuation.

The group bought Temasek Holding Pte's share of Tata Play earlier this year, increasing its ownership to more than 70%. Now that it has complete ownership, the Tata Group is anticipated to better integrate Tata Play's services with its other consumer offers, maybe using its extensive commercial network to encourage innovation and growth. Additionally, the action may clear the path for Tata Play's much-awaited IPO, which has been planned since 2022. 

Reliance Industries Limited, The Walt Disney Company, and Viacom 18 Media Private Limited (Viacom18) reportedly announced the signing of legally binding definitive agreements to establish a joint venture.

Tata Group
Source: Instagram

After deducting synergies, the joint venture was valued at ₹70,352 crores (~US$ 8.5 billion) according to the transaction. After it is finished, Reliance will be in charge of the joint venture, which will be held by 16.34% of RIL, 46.82% of Viacom18, and 36.84% of Disney.  

This joint venture, which combines renowned media assets and provides an extensive range of entertainment options for Indian consumers, is expected to become one of the top TV and internet streaming platforms for entertainment and sports programming in India. 

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