Walt Disney in Talks with Blackstone for Disney+ Hotstar and TV Business Stake in India
According to sources familiar with the matter, private equity firm Blackstone has initiated discussions with Walt Disney regarding the potential acquisition of a stake in Disney’s Indian entertainment arm. This development comes in the midst of Disney’s exploration of various options, including a sale or partnership, for its digital and television business in the highly competitive Indian market.
Both Blackstone and Disney have refrained from providing official comments on these preliminary discussions.
Notably, discussions between the two parties were spearheaded by Candle Media, a US media company backed by Blackstone and founded by former Disney executives. This news was first reported by Indian newspaper The Economic Times.
In addition to Blackstone, Disney has engaged in talks with prominent Indian figures such as Gautam Adani and Kalanithi Maran, as reported by Bloomberg News. These conversations are part of Disney’s efforts to revitalize its streaming business in India, which has witnessed a surge in subscriber attrition. To boost advertising revenue, Disney has adopted a strategy of offering free cricket content on smartphones.
However, Disney has faced challenges as it lost streaming rights for significant cricket tournaments, including the Indian Premier League and the national cricket team’s bilateral matches, to Mukesh Ambani’s broadcasting unit.
In a move to combat password sharing in the Indian market, Disney’s India streaming service, Disney+ Hotstar, implemented a policy limiting premium users to log in from a maximum of four devices. This policy was introduced in July. Notably, Disney’s rival, Netflix, also made changes to its sharing policy, requiring subscribers in more than 100 countries to pay extra for sharing the service with individuals outside their household.
(Disclaimer: This article is based on information from Thomson Reuters in 2023.)