Global private equity giant Blackstone is engaged in discussions with The Walt Disney Company to potentially acquire a stake in Disney’s media operations in India, including its streaming and television businesses, Reuters and Economic Times have separately reported.
The development comes close on the heels of Bloomberg reporting that Disney India has had asset sales talks with Indian billionaires Gautam Adani and Kalanidhi Maran (promoter of Sun TV).
The latest round of talks were reportedly initiated with Blackstone-backed US media firm Candle Media, founded by former Disney executives Kevin Mayer and Tom Staggs, taking the lead in the negotiations. These preliminary discussions indicate the growing interest among financial players and media companies in the Indian entertainment landscape.
Per ET, high-level leadership from both companies have engaged in several rounds of discussions. Blackstone is considering the purchase of either a partial business package, which includes assets like sports properties, media rights, and the Disney+ Hotstar streaming service, or the complete portfolio, encompassing the flagship Star India TV network, over-the-top (OTT) services, and a 30% stake in Tata Play (formerly Tata Sky), according to ET.
Another factor that might influence a potential deal between Disney and Blackstone is Vanguard, the world’s second-largest asset manager after BlackRock and the largest shareholder in both companies.
Disney chief Bob Iger has been actively working to reduce costs by $5.5 billion, aiming to restructure the company and prioritise creativity in three key areas: film studios, theme parks, and streaming. Simultaneously, he’s exploring “strategic options” for Disney’s legacy TV networks, such as ABC. Additionally, Iger has already arranged a $1.5 billion cash deal with Penn Entertainment for ESPN and is in negotiations with Comcast regarding the acquisition of the remaining 33% stake in Hulu, scheduled between September and January 2024.
