Sony begins talks with Disney to buy India biz

The talks are part of Sony's contingency plan in case Zee deal collapses

- Gaurav Laghate

Sony Pictures Entertainment (SPE), the global entertainment unit of Japan's Sony Group Corp., has initiated talks with Walt Disney Co. about a potential acquisition of its India business, said two people with direct knowledge of the matter.

The preliminary discussions with Disney are part of Sony's contingency plan in case its ongoing merger agreement with Zee Entertainment Enterprises Ltd faces inordinate delay or collapses, the people said, requesting anonymity.

"The merger with Zee is in the works for almost two years and has seen its fair share of hiccups. SPE's parent in Japan is getting frustrated with the delay and has asked to be prepared with a Plan B," one of the people said.

Disney Star is a leading entertainment company in India. It operates more than 70 multilingual TV channels and the popular Disney+Hotstar online streaming service.

Several entities, including Reliance Industries (the owner of Viacom18), the Adani Group, and Sun TV Network, have explored the acquisition, either in full or in part, of Disney's Indian business.

Disney declined to comment on Mint's queries; questions mailed to SPE remained unanswered.

Industry experts said Disney's India business may fetch only a fraction of its previous value given the evolving media and entertainment landscape globally and in India. While the linear entertainment business generates over $500 million in profits, the sports and digital segments have incurred losses. When Disney acquired Star India as part of its $71.3 billion deal to acquire Rupert Murdoch-owned 21st Century Fox, the Indian business was valued at $17 billion.