Tata Group to buy Disney Star’s minority stake in Tata Play

Delhi: Walt Disney has finalised a deal to sell its 29.8% minority stake in the subscription television broadcaster Tata Play to the Tata Group, according to media reports. 

The Tata Group, which had raised its stake in Tata Play to slightly over 70% earlier this year by buying out Temasek's stake, will now take full control of the platform.

The transaction values Tata Play at about $1 billion, a significant decrease from its pre-pandemic target of $3 billion. Despite this reduced valuation, Tata Play remains a crucial consumer-facing business unit for the Tata Group in the media and entertainment sector. 

In 2022, Tata Play filed confidentially for a domestic initial public offering (IPO), but the listing has yet to occur. 

The plans for both Temasek and Disney to exit Tata Play through an IPO were postponed due to market conditions and challenges in the DTH sector.

Tata Play has informed the Ministry of Information and Broadcasting about the change in shareholding, complying with regulations governing direct-to-home (DTH) companies.