Walt Disney Co. (NYSE:DIS) has agreed to sell its minority stake in Tata Group’s subscription television broadcaster, Tata Play Ltd., according to sources familiar with the matter. This transaction allows Disney to focus on merging its Indian unit with billionaire Mukesh Ambani’s media arm, Viacom 18 Media Pvt.
The deal values Tata Play Ltd. at approximately $1 billion. Tata Group now holds full control of the TV platform after acquiring Disney’s 29.8% stake, the sources said.
This sale comes as India’s media landscape undergoes significant changes. In late February, Disney signed a binding agreement to merge its India unit with Viacom 18 Media Pvt, creating an $8.5 billion entertainment giant with 750 million viewers.
Tata Play, incorporated in 2001 as a joint venture between Tata Group and TFCF Corp., formerly known as Twenty-First Century Fox, provides pay television via set-top boxes and over-the-top video streaming through its app. The company has a pan-India footprint with 23 million connections.
Earlier this year, Tata Group increased its stake in Tata Play to slightly over 70% by buying out Temasek Holding Pte’s stake. Temasek first invested in Tata Sky, as it was then known, in 2007.
Representatives for Tata Group, Disney, and Temasek declined to comment on the deal.
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