After much market speculation, Reliance is close to acquiring Walt Disney’s (NYSE:DIS) India business. While Disney pegs the valuation for the unit at nearly $10 billion, Reliance is considering the assets at around $7 billion to $8 billion, according to Bloomberg.
Reportedly, Disney’s deal with the Indian conglomerate could be announced as early as next month. This development follows previous reports suggesting that Disney had engaged in discussions about selling its streaming and television operations in India to business tycoons Gautam Adani and Kalanithi Maran.
Disney’s India unit has been grappling with a loss of subscribers. Currently, its Hotstar is streaming the Cricket World Cup for free in India to win back subscribers. Meanwhile, Mukesh Ambani-led Reliance Industries has been steadily heating up the competition in the industry with its streaming platform JioCinema.
India is Disney’s largest operation based on the number of users. Nevertheless, its India unit incurred a loss last year as users flocked to JioCinema.
What Is the Target Price for DIS Stock?
Overall, the Street has a Moderate Buy consensus rating on Walt Disney. The average DIS price target of $106.43 implies 28.8% potential upside.
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