Disney Nearing Deal to Sell $10 Billion India Business to Reliance Industries

Disney to potentially sell Disney Star, which includes the Disney+ Hotstar streaming service, despite facing valuation disagreements with Reliance; deal expected to be finalized as early as next month.

Walt Disney Company is reportedly nearing a deal to sell a controlling stake in its Indian operations, Disney Star, which it values at around $10 billion. The deal is anticipated to be finalized as early as next month.
This sale proposal is a shift from Disney's previous plans regarding its Indian assets, as it had looked into selling the business in parts or finding a partner. The company had previously held talks with billionaires Gautam Adani and Sun TV Network-owner Kalanithi Maran, as well as private equity firm Blackstone.
The likely buyer, Reliance Industries, currently values Disney's India assets, which include the Disney+ Hotstar streaming service and Star India, between $7 billion to $8 billion. This valuation disagreement could pose a potential obstacle to the transaction.
Reliance's success in the streaming industry, particularly through its JioCinema platform, has put significant pressure on Disney's business in India. A particular draw for JioCinema has been its free access to the Indian Premier League cricket tournament, rights previously held by Disney.
The sale could result in Disney retaining a minority stake in the Indian operations and involves a cash and stock swap. It's worth noting, readiness for this major deal doesn't mean final decisions about its terms or valuation have been made yet.