Disney’s deal with Viacom18 is expected to close this month. Disney reached a pact to sell 60 percent of its India unit to Viacom18, as reports on CNBC-TV18, quoting Wall Street Journal.
The deal value is $ 3.9 billion.
Viacom18 and Walt Disney had signed a non-binding term sheet to merge their Indian media operations, last month.
The merger would create one of India’s biggest entertainment empires, setting it in competition with TV players like Zee Entertainment and Sony and streaming giants such as Netflix and Amazon Prime. Under the proposal, Disney will likely continue to hold onto a minority stake in the Indian company after any cash and stock swap transaction is completed.
Though Disney Star has seen declining subscriber numbers after losing the IPL streaming rights, it hasn’t ceded the entire cricket business, securing the television rights through 2027. Last year it agreed to license the TV rights for International Cricket Council men’s matches to ZEE Entertainment Enterprises Ltd. for four years, with Disney+ Hotstar retaining the digital rights. The deal with ZEE is under pressure after the collapse of Zee’s merger with Sony. Disney Star may take legal action against Zee Entertainment Enterprises for backing out of the $1.4 billion sub-licensing agreement for TV broadcast of international cricket matches in India.