Walt Disney To Sell Its Tata Play Stocks: Report

Walt Disney intends to sell all of its stock in Tata Play, formerly known as Tata Sky. 

According to a media report, the American entertainment juggernaut will sell its 29.8 per cent stake in Tata Play's planned initial share offering. The company is currently concentrating on its broadcast and streaming service businesses in India, so Disney's move seems timely.

When Disney purchased the entertainment division of 21st Century Fox from Rupert Murdoch, it also obtained a share in Tata Play. Internal conversations to exit the Indian company began in 2019, but for a variety of reasons, the IPO preparations continued getting postponed.

Disney has made the decision to sell its part of Tata Play and has put all of its shares up for sale in the upcoming IPO. Disney has zero interest in the distribution industry anywhere in the world. It is a storyteller, said a people in the know.

On November 29, Tata Play submitted a private offer document to SEBI for the initial public offering.

Purchasing the interest in Tata Play, according to the current Indian administration led by K Madhavan, was a mistake, states other person in the know

Disney and India's regulatory organisations and the broadcasting ministry have had disagreements over who owns Tata Sky. While India permits 100 per cent foreign direct investment in the satellite TV industry, the maximum ownership position a broadcaster can have in a provider of direct-to-home television is just 20 per cent.

Tata Play has hired various banks, including Kotak Mahindra Capital, to provide advice on the IPO and subsequent listing. Tata Play is considering an IPO of Rs 2,500 crore.