Blackstone in discussion with Disney to acquire India streaming, TV assets

Sources said that there is still no guarantee that negotiations between the two will result in a transaction

Private equity firm Blackstone has initiated discussions with Walt Disney Co to explore the possible acquisition of Disney's streaming and television operations in India, a report by The Economic Times (ET) reveals.

Sources informed ET that Blackstone is weighing options to either partially acquire the business—a combination that could include sports assets, media rights, and the Disney+ Hotstar streaming service—or take over the entire portfolio, which comprises the flagship Star India TV network, over-the-top (OTT) services, and a 30 per cent stake in Tata Play (formerly known as Tata Sky).

Believed to be instrumental in initiating talks with Blackstone are Kevin Mayer and Tom Staggs, former Disney executives who returned in July as advisers at the behest of Chief Executive Bob Iger. After previous stints at Disney, Mayer and Staggs had been running Candle, a media group they co-founded with Blackstone's backing.

Staggs, who formerly served as the chief financial officer and later as chief operating officer at Disney, also oversaw the theme park division. Mayer, once considered a likely successor to Iger, played a pivotal role in shaping Disney's streaming strategy and collaborated closely with the chief executive on key acquisitions.

Another element potentially facilitating a deal between Disney and Blackstone is Vanguard, the world's second-largest asset manager after BlackRock and the largest shareholder in both companies.

It remains unclear whether Blackstone is considering a broader global transaction or focusing solely on India. Globally, Disney is grappling with a debt burden of $44.5 billion and a declining share price. Iger aims to cut costs by $5.5 billion to streamline the company and is also exploring "strategic options" for legacy television networks such as ABC.

Insiders caution that there is no certainty that talks between Disney and Blackstone will culminate in a deal. Discussion of valuation figures is considered premature at this stage.

When Disney acquired 21st Century Fox, owned by Rupert Murdoch, in 2017, the valuation of Fox's Indian operations stood at $14 billion. However, industry insiders currently estimate the value to be in the range of $5 billion to $7 billion due to shifts in the media landscape.

On 11 July, the Wall Street Journal reported that Disney was contemplating strategic options for its Star India division, including potential joint ventures or a sale.