Disney sells 29.8% stake in Tata Play to Tata Group

In a significant move within India's dynamic media sector, Walt Disney Co. has agreed to sell its 29.8% stake in Tata Play Ltd. to Tata Group. This transaction, which values Tata Play at approximately $1 billion, gives Tata Group full control over the subscription television broadcaster. Sources familiar with the deal disclosed this information, preferring to remain anonymous due to the private nature of the transaction.

This sale aligns with Disney's strategy to concentrate on merging its Indian operations with Viacom18 Media Pvt., a merger set to create an $8.5 billion entertainment behemoth with a viewership of 750 million across India.

Tata Play, originally launched in 2001 as a joint venture between Tata Group and TFCF Corp. (formerly Twenty-First Century Fox), offers pay TV via set-top boxes and OTT streaming through its app. It boasts a broad reach with 23 million connections across India. Despite filing confidentially for a domestic IPO in 2022, Tata Play has yet to go public.

Earlier this year, Tata Group increased its stake in Tata Play to over 70% by purchasing shares from Temasek Holdings Pte, which had initially invested in Tata Sky (Tata Play’s former name) in 2007.

Representatives for Tata Group, Disney, and Temasek have declined to comment on the transaction.