Disney (NYSE:DIS) has a preliminary deal to sell majority control of its Indian business to billionaire Mukesh Ambani's Reliance Industries, the WSJ reported - but at a sharply lower valuation than when it was acquired. The memorandum of understanding would see Disney (DIS) merging its India business with Viacom18 - a partnership between Reliance, Paramount Global (PARA) (PARAA) and investment fund Bodhi Tree Systems, according to the report -- and Disney would retain ownership of 40%, with Reliance controlling 51% and Bodhi Tree 9%. And the deal reportedly values the operation at $3.9B; when Disney acquired it via its $71.3B Fox media assets buyout in 2019, the unit was valued somewhere between $7B and $16B. The transaction -- expected to close in February -- would transfer control of the Star India TV networks and streaming service Hotstar along with a minority stake in Tata Sky, and Viacom18 would supply some $1.5B in cash along with stock. Notable in Disney's five-year tenure in charge of the business was when Viacom18 outbid Disney for streaming rights to Indian Premier League cricket, dealing a major blow to Disney's streaming customers in the country (to the tune of millions of subscribers).

Source: Wall Street Journal February 01, 2024 18:45 UTC