In a strategic move, Novi Digital Entertainment, the powerhouse behind the popular streaming platform Disney+ Hotstar, is gearing up to merge with its parent entity, Star India, a jewel in the Walt Disney Company’s crown.
What Happened? According to an ET report, the merger proposal has already landed on the desks of the Mumbai-based National Company Law Tribunal (NCLT), with judicial member Reeta Kohli and technical expert Madhu Sinha overseeing the proceedings.
So, what’s the game plan? Star and Novi aim to streamline their broadcasting, streaming, and distribution ventures. By joining forces, they’re eyeing a host of benefits: tapping into economies of scale, boosting operational efficiency, sharpening their growth focus, and, importantly, trimming down costs.
However, the road ahead isn’t without its checkpoints. The duo will need green lights from tax officials, lenders, and industry watchdogs.
Why it matters? This merger buzz coincides with Walt Disney’s hunt for potential buyers for Star India. Industry whispers suggest that Walt Disney has been courting giants like Mukesh Ambani’s Reliance and Blackstone, exploring options ranging from a partial handover to a complete sale of Star India, a dominant player in both traditional TV and the streaming arena, as per ET sources.
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