Reliance Industries Limited (NSEI:RELIANCE) (RIL) is in discussions to acquire a 29.8% stake in Tata Play Limited from The Walt Disney Company (NYSE:DIS), according to sources close to the development. This move is seen as part of RIL?s broader strategy to deepen its footprint in India?s television distribution sector. Tata Sons, the holding company of the Tata group, currently holds a 50.2% stake in the satellite television broadcaster.

Besides Disney, the remaining shares are owned by Temasek, a Singapore-based fund. If the negotiations are successful, it would mark the first time the Tata group and the Ambanis have partnered in a joint venture. It would also extend the reach of JioCinema across the Tata Play platform.

Disney had intended to divest its shares during Tata Play's initial public offering, but as the listing was postponed, the American company began exploring other exit strategies. The spokespersons of RIL, Disney, and Tata Sons declined to comment. Temasek had also been in discussions with the Tata group last year to sell its 20% stake in the company, valued at approximately $1 billion.

However, no agreement was reached. A source revealed that with the acquisition of the Tata Play stake, Reliance plans to offer its entire JioCinema content bouquet to Tata Play customers. Bankers, according to the sources, are currently evaluating the value of Disney's stake in Tata Play.

The satellite television broadcaster faces numerous challenges, primarily competition from streaming platforms, such as Netflix, Hotstar, JioCinema, and Amazon Prime.