Billionaire Mukesh Ambani’s Reliance Industries has entered negotiations with Walt Disney to purchase the latter’s 29.8% equity position in loss-making satellite TV operator Tata Play (Earlier Tata Sky) as per the Business Standard newspaper.
The prospective deal would enable Reliance to integrate its entire catalogue of JioCinema streaming content alongside Tata Play’s existing DTH service offerings to customers. It would also constitute the maiden joint collaboration between the two Indian conglomerates.
First Tata-Reliance Venture on the Cards
If talks successfully conclude, the acquisition would symbolize Reliance’s inaugural partnership with the Tata Group across any business segment. It mirrors Reliance’s ambitions to aggressively expand its media and entertainment footprint beyond streaming into satellite television as well.
For Tata Play, the stake sale may serve to find a profitable growth path after swinging to a Rs 1,050 crore loss in FY23 with a 5% revenue decline amid market pressures. Reliance’s muscle with content and distribution can potentially reverse its fortunes.
Reliance also continues high-stakes discussions with Disney for a majority stake purchase in the latter’s India entertainment operations, valued at $3.5 billion. This reveals its multimedia expansion strategy into varied segments.
