Disney has supposedly come to an agreement to sell 60% of its India media division, valuation of $3.9bn

According to the Wall Street Journal, the media giant has formed a preliminary agreement to sell a big stake of its Indian division, with an approximate valuation of $3.9 billion.

About a month ago, Disney and Viacom18, a joint venture comprising Mukesh Ambani's Reliance Industries, Paramount Global, and Bodhi Tree Systems, reached an agreement in principle to consolidate Disney's India businesses.

The Indian unit's agreed-upon price of $3.9 billion signifies a substantial decrease from its valuation during Disney's 2019 acquisition. For $71.3 billion, the media and entertainment behemoth purchased the entertainment assets of 21st Century Fox; the acquisition was made possible in large part by Star India.

Disney would keep 40% of the business, Reliance would buy 51%, and Bodhi Tree would take 9%, under the planned agreement. The Hotstar streaming service, the Star India television networks, and a minority stake in Tata Sky are all part of the Disney India portfolio.

In exchange for its stake in the recently combined company with Disney's India division, Viacom18 is expected to pay about $1.5 billion in cash and offer shares.

However, the WSJ article noted that this agreement is not yet finalised and might be altered.

(Sources: investing.com, wsj.com)