Walt Disney Co. (NYSE:DIS) has struck a preliminary agreement to sell a majority stake in its Indian media division, valuing the unit at $3.9 billion, the Wall Street Journal reported on Thursday.
The deal comes roughly a month after Disney agreed in principle to merge its India operations with Viacom18, a joint venture involving Mukesh Ambani's Reliance Industries, Paramount Global, and Bodhi Tree Systems.
The agreed figure of $3.9 billion for the Indian unit represents a significant drop from its value at the time of Disney's acquisition in 2019. The media and entertainment giant acquired 21st Century Fox's entertainment assets for $71.3 billion, a move that was notably enhanced by the addition of Star India.
According to the proposed deal, Disney would retain a 40% stake, with Reliance acquiring 51% and Bodhi Tree taking 9%. The Disney India portfolio includes Star India television networks, the Hotstar streaming platform, and a minority interest in Tata Sky.
DIS climbed 0.3% in premarket trading.
Viacom18 is set to pay around $1.5 billion in cash and provide stock for its share in the newly merged entity with Disney's India business.
This arrangement, however, is not yet finalized and may be subject to change, the WSJ report stated.