By the looks of it, every possible name will have been crossed off the list if and when a buyer for Disney’s India business is finally announced.
Media major Sony Pictures Entertainment (SPE) is the latest in early-stage talks with Walt Disney Co. regarding a potential acquisition of its India business.
This follows various reports of “early-stage talks” having been initiated with private equity major Blackstonr, Gautam Adani, Kalanithi Maran, and the Ambanis (to name the entities as being confirmed to have had talks). As per Mint, Sony Pictures Entertainment (SPE) is in early-stage talks with Walt Disney Co. regarding a potential acquisition of its India business.
The initial discussions between Sony and Disney are seen as part of Sony’s contingency strategy, considering the possibility of a prolonged delay or current merger agreement with Zee Entertainment Enterprises Ltd going south, the business daily reported Monday.
The latest report carries forward news published by Bloomberg and the Wall Street Journal in July that Disney was weighing strategic options for the business, including an outright sale or setting up a joint venture, after the Indian unit lost its streaming rights to the Indian Premier League to Reliance-controlled Viacom18. Disney had approached Reliance about potentially buying a stake in the business, “a person familiar with the matter” had told the business news agency at the time.
Per Mint, Sony’s discussions with Disney are part of SPE’s plan B.
While the prolonged regulatory challenges in the Zee-Sony deal may have prompted Sony Pictures Entertainment (SPE) to explore other opportunities, the sudden prospect of acquiring Disney’s India business has caught the attention of the global entertainment media company.
On August 14, the Securities and Exchange Board of India (SEBI) accused Goenka of financial irregularities, leading to a delay in the merger. Although NCLAT (National Company Law Appellate Tribunal) has approved the merger, SEBI’s investigation into Goenka’s activities is expected to take eight months. The same has been challenged by the Goenkas.
Sony, in a recent statement, mentioned that the transaction, earlier anticipated to close by the end of the first half of the fiscal year ending on March 31, 2024, is now expected to take some unspecified months to conclude. The company continues to assess the impact of the transaction on its consolidated financial results.
