Disney sells 60% of India business to Viacom18 for $3.9 billion - Report

The Walt Disney Company has entered into a "preliminary agreement" to sell 60% of its India business to Viacom18, valued at $3.9 billion (₹33,000 crore), according to a Wall Street Journal report. This marks a significant shift for Disney in a market that once held high aspirations.
Reports had suggested a potential merger with Reliance Industries and a valuation closer to $10 billion.
This deal comes amidst challenges for Disney+ Hotstar in India. The platform has seen a steady decline in subscribers, dropping from 61.3 million in September 2022 to 37.6 million a year later. The loss of key content like IPL and HBO shows, coupled with competition from Jio Cinema, are cited as contributing factors.
While the reasons behind the sale remain officially undisclosed, speculation points towards:

Shifting priorities: Disney might be refocusing its resources on core markets and high-growth areas like Disney+.
Content challenges: Navigating the complex Indian media landscape and securing popular content might have proven difficult.
Financial considerations: Offloading a portion of the business could improve financial flexibility and streamline operations.
The deal with Viacom18, owned by Reliance Industries, positions the media giant to become a major player in the streaming wars. Disney, meanwhile, retains a 40% stake and will continue to collaborate on content creation and distribution.
This move signals a new chapter for both companies in the dynamic Indian media landscape. Only time will tell how this strategic shift plays out, but it's sure to have a significant impact on the entertainment industry in the region.