Updated February 15th, 2024 at 15:32 IST

Reliance Industries in talks to buy Tata Play stake from Disney: Report

The reports indicate that Temasek, which holds a 20% stake valued at close to $1 billion, has been seeking to divest its share in the company.

Reported by: Business Desk
Reliance Industries Q2 | Image:Shutterstock
Advertisement

Reliance Industries to buy Tata Play stake: Mukesh Ambani-backed Reliance Industries is reportedly in discussions to acquire a 29.8 per cent stake in Tata Play from the Walt Disney Company. The move, as per a report from Business Standard, underscores Reliance's strategic interest in expanding its presence in the country's television distribution sector.

Tata Sons currently holds a 50.2 per cent stake in the satellite television broadcaster, while the remaining shares are divided among entities like Disney and Temasek, a Singapore-based fund.

Advertisement

The potential deal marks a notable collaboration between Tata Group and Reliance, marking their first joint venture, which aims to extend JioCinema's influence across the Tata Play platform.

Reports indicate that Temasek, which holds a 20 per cent stake valued at close to $1 billion, has been seeking to divest its share in the company. 

Advertisement

For the fiscal year ending March 31, 2023, Tata Play recorded a loss of Rs 105 crore against revenue of Rs 4,499 crore.

Additionally, negotiations between Disney and Reliance are said to be in the final stages, aiming to solidify a major stock-and-cash merger that would establish India's largest media and entertainment conglomerate.

Advertisement

Viacom18 could potentially emerge as the leading shareholder, holding 42-45 per cent in the combined entity. 

Reliance Industries is anticipated to inject up to $1.5 billion in cash into the new entity, securing a 60 per cent ownership stake, while Walt Disney would retain the remaining 40 per cent.

Advertisement

Published February 15th, 2024 at 09:12 IST