Reliance Industries in Talks to Acquire Stake in Tata Play from Disney

If successful, this collaboration between the Tata group and the Ambanis would pave the way for a joint venture, while also expanding the reach of JioCinema.

Thursday, February 15, 2024 8:30 AM UTC

According to sources familiar with the matter, Reliance Industries (RIL), owned by Mukesh Ambani, is reportedly discussing acquiring a 29.8% stake in Tata Play from the Walt Disney Company. Currently, Tata Sons, the holding company of the Tata group, holds a 50.2% stake in the satellite television broadcaster. Temasek, a Singapore-based fund, owns the remaining shares.

Reliance Industries and Tata Group May Partner in Joint Venture

Business Standard reported that if successful, this partnership would mark the first time the Tata group and the Ambanis have joined forces in a joint venture. Moreover, it would expand JioCinema's reach across the Tata Play platform.

Disney initially intended to divest its shares during Tata Play's initial public offering, but due to the postponement of the listing, the American company started exploring alternative exit strategies.

Disney, RIL, and Tata Sons declined to comment on the matter. Last year, Temasek was also in discussions with the Tata Group to sell its 20% stake in the company, valued at approximately $1 billion. However, no agreement was reached.

With the acquisition of the Tata Play stake, Reliance plans to offer its entire JioCinema content bouquet to Tata Play customers.

According to Daily Star, bankers are currently assessing the value of Disney's stake in Tata Play. The satellite television broadcaster faces significant challenges, primarily from competition from streaming platforms like Netflix, Hotstar, JioCinema, and Amazon Prime.

In the financial year ending March 31, 2023, Tata Play reported a loss of Rs 105 crore on revenue of Rs 4,499 crore, contrasting with the previous year when the company reported a profit of Rs 68.60 crore on revenue of Rs 4,741 crore.

Reliance and Tata Group to Forge Partnership

As per the memorandum of understanding (MoU) signed between the companies, Disney will retain a 40% stake in its India business, while RIL will acquire a 51% stake. Additionally, Bodhi Tree, a venture established by media scion James Murdoch and former Disney India chief Uday Shanker, will hold a 9% stake in the TV network and OTT business.

Photo: Tata Play Newsroom