Sony & Adani out! JioCinema-Hotstar merger likely as Disney-Reliance deal in final stage

Disney Star is ready to sell a majority stake in Disney+ Hotstar with Mukesh Ambani-backed Reliance emerging as the frontrunner. Although Disney Star executives had meetings with Sony and Adani group, Reliance has emerged as the strong contender. If the deal goes through, JioCinema and Disney+ Hotstar could merge to form a single platform, creating a monopoly in sports live streaming in India. The deal is likely to be finalised as early as next month.

As per Bloomberg, even though Disney was ready to sell only some percentage of the shares, now the California-based company is ready to part ways with a majority stake which is worth $10 billion.

With the discussions underway, Reliance is ready to offer $7-8 billion for the deal. If the deal goes through, it will be a cash+stock deal but Disney will look to hold on to some of the assets for longer.

It must be noted that despite declining viewership on Disney+ Hotstar, the Cricket World Cup has alleviated some pressure. A world record 43 million fans tuned in to watch India vs New Zealand match on Sunday, surpassing India vs Pakistan fan craze.

“This partnership between Disney and Reliance could thrive because it marries Disney’s global brand recognition, creative expertise, and vast content library with Reliance’s deep understanding of the Indian market, robust distribution channels, and local operational prowess. Together, they could cohesively navigate the cultural and business nuances of India, presenting content and experiences tailored to local tastes while maintaining the global standards Disney is renowned for, thereby catering to a vast and diverse audience,” said Sonam Chandwani, Managing Partner KS Legal & Associates.

Déjà woohoo! Another record-breaking performance by all of us! 🎉🥳
Time for a hat-trick?🤞#INDvNZ pic.twitter.com/IBm2V39dIl
— Disney+ Hotstar (@DisneyPlusHS) October 22, 2023

Disney-Reliance deal: All you need to know

With mounting losses, Disney is set to part ways with a majority shares of India operations.
Since losing IPL digital rights and HBO content, Disney+Hotstar has seen a sharp decline.
Disney Star posted a $444 million loss from Indian sports business on Oct 18.
With that, Walt Disney Co is looking to sell some of its business which includes Disney+ Hotstar.
Even though Adani and Sony were in discussions, Reliance has emerged as the frontrunner.
If everything goes well, the deal, valued at around $10 billion, will be announced next month.
As part of the deal, some of the properties could be merged including Hotstar and JioCinema.
However, Disney Star won’t let go of the complete business. Instead, it will hold on to minority shares

Reliance monopoly

If the deal goes through, Reliance will hold complete monopoly in Indian sports broadcast market. Reliance-backed Viacom18 outbid its rivals to bag IPL Digital Rights for Rs 23,575 Crore. While Star India still holds the TV rights, it remains to be seen whether it is part of the deal.