Disney Nearing Sale of Indian Operations to Reliance Industries

Reliance Industries in talks to acquire Disney's India operations including Disney+ Hotstar, in a deal valued around $10 billion amidst Disney's strategic global reconfiguration and falling Disney+ Hotstar subscribers.

• Disney is reportedly in talks to sell its India operations, including its controlling stake in Star India and Disney+ Hotstar, to Mukesh Ambani’s Reliance Industries in a deal valued around $10 billion. The decision is part of Disney's global reconfiguration strategy as it grapples with falling subscriber numbers and underperforming assets.
• No final decision on the sale has been made and there are other potential suitors including Indian billionaires Gautam Adani, Kalanithi Maran, and the private equity firm Blackstone. However, Reliance Industries, which values the assets between $7 to $8 billion, looks set to win the bid.
• Reliance Industries is already a competitive player in the Indian media market. It co-owns JioCinema, a low-cost streaming service that has been challenging Disney+ Hotstar's dominance in the streaming market. JioCinema recently outbid Disney+ Hotstar for the five-year streaming rights to the Indian Premiere League cricket matches.
• Disney's decision to sell its Indian assets follows a significant decline in Disney+ Hotstar subscribers from 57.5 million to 40.4 million over the course of 2023, along with a falling average revenue per user from 74 cents to 59 cents. The streaming service was acquired as part of the $71.3 billion acquisition of 21st Century Fox’s entertainment assets in 2019.
• Despite the challenges faced by Disney in the Indian streaming market, the deal with Reliance Industries signals a significant shift in Disney's strategy as it fails to compete effectively with other major streaming services like Netflix. Disney continue to explore strategic options for offloading other assets globally.

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