Viacom18 set to take majority stake in Disney’s Indian operations

Viacom18, the Indian firm backed by Reliance Industries, Paramount Global and James Murdoch’s Bodhi Tree Systems, is set to take a 60% stake in Disney’s operations in the country.

Aarya from Disney+ Hotstar

A preliminary agreement has been struck between the parties, according to the WSJ, with the Mouse House’s Indian business valued at $3.9bn.

It marks a substantial write down compared with the value Disney placed on the Star India/Hotstar business it acquired in 2019, following the deal for Fox’s entertainment assets.

Disney, whose future in India has been uncertain for almost a year, will retain a 40% stake in the Indian unit, with Reliance holding a 51% stake and Bodhi Tree taking a 9% interest.

The news comes six weeks since the companies struck a non-binding agreement around the deal, which notably will see streaming and broadcast rights to Indian Premier League cricket falling under the same roof.

Disney’s Hotstar streamer lost those rights 18 months ago to Viacom 18, leading to a considerable drop-off in subscribers. Instead, it picked up pay TV rights for around $3bn.

Conversely, Viacom18 has seen subscribers surge after it picked up streaming rights to the same matches, also for around $3bn.

Disney+ Hotstar has been behind a growing number of originals such as Aarya, Hundred and Out Of Love, which sit alongside its library content.

It has, however, found itself under increasing competitive pressure in India since Viacom18 decided to make IPL free to view on its JioCinema streaming platform.

Sony Pictures Entertainment were among suitors reportedly in early discussions, although that was as a potential contingency plan if its long-running and nearly completed merger with Zee Entertainment faces further delays. That tie-up was ruled out last month following years of delay.