Novi Digital Entertainment, which owns the Disney+ Hotstar streaming platform, has started a process to merge with its parent firm Star India. Star India is owned by The Walt Disney Company.
According to the report, Both companies have already filed the scheme of merger with the Mumbai bench of the National Company Law Tribunal (NCLT). The division bench of judicial member Reeta Kohli and technical member Madhu Sinha is hearing the matter.
The merger is expected to strategically reorganize the duo’s operations in the fields of streaming, broadcasting, and distribution.
In their application, Star and Novi reportedly stated that the move would help them achieve economies of scale, enable synergies, increase operational efficiencies, put a greater emphasis on growth, make the best use of resources, and lower costs.
Meanwhile, there have been other reports saying that Walt Disney Co. has been holding talks with Mukesh Ambani’s Reliance Industries, SUN TV, Adani Group, and Blackstone over the partial or complete sale of Disney’s media operations in India, including its streaming and television businesses.
Disney’s India streaming operations, its biggest last year worldwide by users, reported a loss of $41.5 million on revenue of $390 million for the year to March 2022, its last disclosed results. GoodReturns