The companies are in preliminary talks about an acquisition of Disney’s significant minority stake, which would value Tata Play at about $1 billion or more, the people said, asking not to be identified as the considerations are private. Tata may decide not to pursue a deal, they said.
Representatives for Tata and Disney declined to comment.
The buyback discussions with Disney come after the American company signed a binding agreement in late February to merge its India unit with billionaire Mukesh Ambani’s media arm Viacom 18 Media Pvt., creating an $8.5 billion entertainment giant that will have 750 million viewers and dominate the sector in the world’s most-populous country.
The mega merger is also triggering an exit by another media behemoth as minority partners cash out. Paramount Global on Thursday agreed to sell its 13% stake in its Indian TV business to its partner, Ambani’s Reliance Industries Ltd., for $517 million.
Disney and Paramount’s transactions, including the discussions with the coffee-to-cars Tata conglomerate, show that global media giants are paring their exposure or exiting the Indian market as local players consolidate their holdings.
