Under the agreement, Tata Group assumes complete ownership of the TV platform by purchasing Disney’s 29.8% stake.
According to Bloomberg sources, Walt Disney Co has agreed to divest its minority share in Tata Play to Tata Group. This move will enable the US media conglomerate to concentrate on merging its Indian division with Mukesh Ambani’s media conglomerate. The report further mentioned that the transaction assessed Tata Play Ltd. at approximately $1 billion.
In the agreement, Tata Group acquires complete ownership of the TV platform by purchasing Disney’s 29.8% stake. This follows Disney’s signing of a binding deal in late February to merge its India unit with Viacom 18 Media Pvt, forming an $8.5 billion entertainment powerhouse.
Journey of Tata Group Acquisition:
Tata Play, established in 2001 as a collaboration between Tata Group and TFCF Corp, offers pay television via set-top boxes and over-the-top video streaming via its app, according to Tata Sons’s website. In 2022, Tata Play confidentially filed for a domestic IPO, with the listing pending.
Tata Group increased its ownership in Tata Play to more than 70% by acquiring Temasek Holding Pte’s stake earlier this year. Temasek had reportedly invested in 2007.
Established in 2001, Tata Play is a joint venture between Tata Group and TFCF Corp., formerly known as Twenty-First Century Fox. The company offers pay television via set-top boxes and over-the-top (OTT) video streaming through its app, boasting a nationwide presence with 23 million connections, as per Tata Sons – the holding firm of the Tata Group.
Despite a valuation decrease from its pre-pandemic aim of $3 billion to $1 billion, Tata Play retains its significance for the Tata Group as its primary consumer-facing entity in the media and entertainment field. In 2022, Tata Play confidentially submitted for a domestic IPO, which is still pending.
According to Bloomberg, Tata Group increased its ownership in Tata Play to just over 70% by purchasing Temasek Holding Pte’s stake earlier this year. Temasek initially invested in Tata Sky, as it was then called, in 2007.
According to a report by SMT, Tata Play has notified the Ministry of Information and Broadcasting about the alteration in shareholding, adhering to regulations governing direct-to-home (DTH) firms. The report states that both Temasek and Disney’s plans to withdraw from Tata Play via an IPO were delayed due to market conditions and challenges in the DTH industry.
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