Reliance Industries is reportedly in talks to acquire a 29.8 percent stake in Tata Play, which is currently held by Disney, according to a recent report. This potential collaboration between the Tata Group and Mukesh Ambani’s conglomerate could mark their first partnership. If successful, the deal could greatly benefit JioCinema, as it may offer its complete streaming content to Tata Play customers. At present, Tata Sons holds the majority stake of 50.2 percent in Tata Play, while Walt Disney owns roughly 30 percent and the remainder is owned by Singapore-based fund Temasek.
Disney’s original plan was to sell its shares in Tata Play during the firm’s initial public offering (IPO), but due to the IPO’s postponement, Disney is now exploring other exit options. Bankers are currently valuating Disney’s stake in Tata Play, which also provides access to video streaming services. So far, there have been no official statements from Reliance, Tata Play, or Disney regarding the potential deal.
Tata Play has been struggling in the face of competition from over-the-top (OTT) platforms, leading to a decline in its direct-to-home (DTH) services. The company reported a loss of ₹105 crore (approximately $13 million) in fiscal 2023, whereas it had a profit of ₹68.6 crore previously. Additionally, its revenue dropped by 5% during the same period.
Recent reports suggest that Reliance is on the verge of merging its media business in India with Disney, which would grant Reliance a controlling stake of 51 to 54 percent. In this merger, Disney’s Indian operations would be valued at $3.5 billion, while Reliance remains India’s most valued company, worth nearly ₹20 lakh crore.
The completion of this merger, potentially by the end of February, would result in the creation of one of the largest media entities in India. Furthermore, it could revolutionize the sports streaming rights landscape by allowing Reliance to secure the exclusive cricket rights for all formats.
By delving into this collaboration, Reliance is aiming to strengthen its position within India’s $28-billion media and entertainment market. As the rise of OTT platforms continues to erode Tata Play’s business, a partnership with Mukesh Ambani’s conglomerate could prove to be a significant boost for JioCinema. However, the outcome of the negotiations and the possible impact on the Indian media industry remain to be seen.
