Third time has certainly not been a breeze for The Walt Disney Company and its investments in India. It was in July 2018 that The House of Mouse completed the takeover of 21st Century Fox for all of $71.3 billion. And the valuation of Fox’s India unit Star TV at the time? $16bn!
Fast forward to the present and the valuation of Disney’s India unit has fallen massively to approximately $4.5bn, significantly below the parent’s initial expectation of $10bn.
Following prolonged negotiations and a non-binding agreement with Reliance Industries, Disney’s assets in India appear to be assessed at a considerably lower value than initially envisioned, insiders familiar with the matter revealed these details to Bloomberg on the condition of anonymity.
Per Bloomberg, the new combined entity of Disney Star in India and Reliance will be valued at $11 billion.
It was in July 2023 that Disney started exploring strategic options for its business in India, reflecting on the shift in Star India’s fortunes following Disney’s acquisition of Fox’s entertainment assets. Back then the company was open to both joint venture and sale.
So we return to SportzPower’s introductory observation of how Disney’s third attempt at an India play, like the two earlier ones that came before, has YET AGAIN not panned as per the script.
To go back down memory lane, it was in August 2003 that The Walt Disney Company and Lalit Modi’s (the man who saw tomorrow with the Indian Premier League) Modi Enterprises, after bitter wranglings, said they have dissolved their decade-old joint venture arrangement – Walt Disney India, inked in August 1993. Disney’s investment in the failed JV? In the Rs 100 crore ball park.
Then in July 2006, Disney India acquired a controlling stake in Hungama TV from Ronnie Screwvala’s UTV Software Communications Limited, while also taking a 14.9 per cent share in UTV. In 2008, the company took an additional 17.5 per cent share in UTV. Later in 2012, it acquired the remaining shares of UTV for $454 million and formed a new holding company Walt Disney Company India, to manage UTV and other businesses.
However, four years on in 2016, it indicated that it was shutting down UTV Motion Pictures, its Hindi film production unit. As to what was Disney’s investment in its second India acquisition play? Rs 2,000 odd crores.
In conclusion, Disney has just not had things go its way when it comes to its media investments in the Indian market.
