Disney has consented to divest 60% of its Indian media business at a decreased valuation.

The Walt Disney Company is reportedly in the process of selling 60% of its stake in Disney Star, its India business, to Viacom18 and Bodhi Tree, both backed by Reliance. This move follows a non-binding agreement signed in December to merge their India units, with the deal likely to be finalized this month. Disney is anticipated to retain a 40% stake in the merged entity, valuing Disney Star at $3.9 billion—a significant decrease from its initial valuation of $10 billion in July. Viacom18 and Bodhi Tree are also expected to hold around 9% in the new merged entity.

While Disney declined to comment on the potential deal, Viacom18 has not provided immediate comments. This proposed merger occurs amidst the recent collapse of the $10-billion Zee and Sony merger, leading to legal disputes between the two companies over the failed deal.

Sources suggest that the valuation of Disney Star stands at $4.5 billion, influenced by ongoing subscriber losses in the Hotstar streaming platform and the potential write-off of the ICC TV rights sale to Zee for $1.5 billion. The new entity resulting from the Disney-Reliance collaboration is projected to generate a turnover of nearly ₹29,000 crore, with a combined viewership market share of 35-40% across 115 channels, two video streaming platforms, and two film studios (Star Studios and Jio Studios).