Entertainment giant Disney (NYSE:DIS) and its attempts to push into the Indian television market have been proceeding apace, at least according to the latest reports. But the investors aren’t exactly happy about it, as Disney is down nearly 2% in Thursday morning’s trading session.
The latest reports note that a new deal between Disney and Reliance Industries is approaching completion. Both Disney and Reliance own streaming platforms, and Reliance also has the biggest pay-TV operation in India, along with more than 100 linear TV channels to go along with it.
Naturally, a deal this big has the potential to fundamentally alter the landscape, so the reports note that both sides have already engaged lawyers to fend off the antitrust issues that are almost certain to follow. Plus, both sides have already signed a merger term sheet, though it’s non-binding.
Recovering From the Cricket Losses
There’s a very good reason why Disney is looking to get its position back in India. Disney actually had a pretty strong presence in India previously, and it was largely thanks to one thing: cricket. But Disney lost the rights to stream cricket matches in India, and that loss hit Disney hard in that market. It’s been frantically trying to recover ever since. Thus, Disney connecting with Reliance is a good way to get back into the field.
What is the Target Price for Disney?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 17 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 1.72% loss in its share price over the past year, the average DIS price target of $109.67 per share implies 21.53% upside potential.
