Disney explores strategic options for India business: WSJ
WALT Disney is exploring strategic options for its Star India business, including a joint venture or a sale, The Wall Street Journal (WSJ) reported on Tuesday (Jul 11), citing people familiar with the matter.
The company has talked to at least one bank about ways to help the India business grow, while sharing some of the costs, according to the report.
The talks are in the early stages and it is unclear which options, if any, Disney might pursue, WSJ said.
Disney’s India business comprises Disney+ Hotstar streaming service and Star India, which it took over when it acquired the entertainment assets of 21st Century Fox in 2019.
Star’s overall revenue for the fiscal year ending September 2023 is expected to drop around 20 per cent to slightly less than US$2 billion, according to WSJ. Its earnings before interest, taxes, depreciation and amortisation is expected to fall roughly 50 per cent for that period, from about US$200 million last year.
Hotstar is expected to lose 8 million to 10 million subscribers in its fiscal third quarter, the report added.
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Star India, which was rebranded as Disney Star last year, encompasses dozens of TV channels and a stake in a movie production company.
Disney, like its peers in streaming and the wider media industry, is cutting costs as macroeconomic headwinds weigh on its advertising revenue and subscriber growth.
In February, the company said it would cut 7,000 jobs as part of an effort to save US$5.5 billion in costs in a sweeping restructuring of the company.
Disney did not immediately respond to a Reuters request for comment.
The company’s shares closed up 1.6 per cent on Tuesday. REUTERS
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