Disney considers selling $10 billion India operations to Reliance

Disney is on the verge of clinching a deal to sell its operations in India, estimating their worth at approximately $10 billion, to Reliance Industries. Instead of dividing the business into segments, Disney is planning to sell a controlling stake to Reliance, the conglomerate controlled by Mukesh Ambani. This decision comes in light of the immense success of Reliance's streaming platform, Jio Cinema, which has impacted Disney's prospects considerably.

Disney's India business comprises the Disney+ Hotstar streaming service and Star India, and it was the company's most substantial business in terms of users last year. In the year leading up to March 2022, it recorded a loss of $41.5 million with revenues totaling $390 million. According to the report, Reliance values Disney's assets in India at around $7 billion to $8 billion. Although a formal announcement is yet come, it is important to note that no definitive choice has been made, and Disney still has the option to retain ownership of these assets.

Reliance's JioCinema has exerted mounting pressure on Disney India, with Mukesh Ambani promoting the platform by providing complimentary access to the Indian Premier League cricket tournament. Previously, the digital rights to this tournament were held by Disney. Additionally, earlier this year, Viacom18, a subsidiary of Reliance, secured a deal with Warner Bros for their content, including HBO media. Several of these shows were previously aired in India on the Disney platform.