India's Tata Group considering to buy Disney's stake in Tata Play: Report

Tata Group is in the early stages of discussions to acquire Walt Disney Co.'s significant minority stake in Tata Play Ltd., potentially valuing the direct-to-home (DTH) service provider at $1 billion or more.

Notably, The move could lead Tata Group to gain full control over Tata Play, marking a significant shift in the media landscape.

Background of Tata Play

Originally launched in 2004 as Tata Sky, the company was a joint venture between Tata Sons and Network Digital Distribution Services FZ-LLC (NDDS), linked to 21st Century Fox.

With India's foreign direct investment (FDI) regulations capping foreign ownership in DTH services at 20%, Fox (and later Disney, following a $71 billion acquisition deal) held a minority stake. 

The strategic shift in media alliances

The discussions between Tata and Disney emerge amidst a broader realignment in India's media industry. Disney's recent agreement to merge its India operations with Viacom 18 Media Pvt Ltd, a subsidiary of Reliance Industries, has created an $8.5 billion entertainment behemoth.

The joint venture, which holds a vast array of TV channels and OTT platforms, signifies a major consolidation move that could reshape the competitive landscape, especially in the OTT market.