Walt Disney has agreed to sell its stake in Tata Play, valuing the Indian conglomerate Tata Group’s satellite TV provider at approximately $1 billion, according to Bloomberg News sources.
The move comes as Disney aims to focus on its merger with India’s leading conglomerate, Reliance Industries, to create an $8.5 billion entertainment giant, surpassing competitors in India.
Last month, Tata Sons, the Tata Group’s holding company, raised its stake in Tata Play to 70% by acquiring a 10% stake from Singapore’s state investment firm, Temasek, for about $100 million, as reported by local media.
Following Temasek’s exit, Tata Play now operates as a 70:30 joint venture between Tata and Disney. The change in the joint venture’s shareholding ratio after the stake sale was not specified in the Bloomberg report.
Both Disney and Tata Group did not immediately respond to requests for comment from Reuters.
Disney acquired its stake in Tata Play through the purchase of Star India, which it acquired as part of the 21st Century Fox’s India assets acquisition in 2017.