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Disney explores strategic options for Star India business: Report

Star India business

Star India business – According to sources familiar with the situation quoted by the Wall Street Journal, Walt Disney is apparently investigating several strategic options for its Star India company, including a joint venture or sale. The company has held negotiations with at least one bank in order to discover potential for the expansion of its India business while also sharing some of the associated costs. 

Although the conversations are still in their early stages, it is unknown exactly particular choices Disney may explore in relation to its Indian operations. The conglomerate’s India business comprises the popular Disney+ Hotstar streaming service and Star India, which came under Disney’s ownership following its acquisition of 21st Century Fox’s entertainment holdings in 2019. 

According to the WSJ, Star India’s entire revenue for the fiscal year ending September 2023 is expected to fall by nearly 20%, finishing at just under $2 billion. Furthermore, its earnings before interest, taxes, depreciation, and amortisation (EBITDA) are expected to plummet by nearly 50% from the previous year, decreasing from around $200 million. 

Star India business

According to the estimate, Hotstar will lose 8 million to 10 million subscribers in its fiscal third quarter. These occurrences highlight the difficulties encountered by Star India, which was rebranded as Disney Star the previous year. The media conglomerate’s India operation includes a variety of television networks as well as a stake in a famous film production company. 

Due to the negative impact of macroeconomic conditions on advertising revenue and subscriber development, Disney and other industry players in the streaming and media industries are proactively pursuing cost-cutting initiatives. The corporation announced a substantial reorganisation exercise in February aimed at saving $5.5 billion in expenditures, which resulted in the termination of 7,000 jobs. 

The announcement that Disney is exploring strategic options appears to have boosted investor confidence, as the company’s shares closed up 1.6% on Tuesday.