Disney exploring strategic options for its India Filesadmin.co including JV, and sale

Walt Disney is exploring strategic options for its Star India business, including a joint venture or sale, The Wall Street Journal It was reported on Tuesday, citing people familiar with the matter.

The company has talked to at least one bank about ways to help Indian businesses grow, while sharing some of the costs, according to the report.

The Wall Street Journal said the talks are in their early stages and it’s not clear which options, if any, Disney might pursue.

Disney’s businesses in India consist of streaming service Disney+ Hotstar and Star India, which it acquired when it acquired the entertainment assets of 21st Century Fox in 2019.

Star’s total revenue for the fiscal year ending September 2023 is expected to drop about 20 percent to just under $2 billion, according to the WSJ. Its EBITDA is expected to decline by about 50 percent for that period, from about $200 million last year.

The report added that Hotstar is expected to lose between 8 to 10 million subscribers in the third quarter of the fiscal year.

Star India, which was renamed Disney Star last year, includes dozens of TV channels and a stake in a film production company.

Disney, like its streaming peers and the broader media industry, is cutting costs as macroeconomic headwinds hit advertising revenue and subscriber growth.

In February, the company said it would cut 7,000 jobs as part of an effort to save $5.5 billion in costs in a comprehensive restructuring of the company.

Disney did not immediately respond to a Reuters request for comment.

The company’s shares closed up 1.6 percent on Tuesday.