Finance & MarketsHigh Priority (9/10)India

Diageo Sells Royal Challengers Bengaluru to Blackstone Consortium for $1.77 Billion

Diageo has agreed to sell its Indian cricket franchise Royal Challengers Bengaluru to a Blackstone-backed consortium for approximately 166.6 billion rupees ($1.77 billion), completing a strategic review of its Indian sports assets.

Key Points

  • Sale price is approximately $1.77 billion (166.6 billion rupees)
  • Buyer is Blackstone-backed consortium including Bolt Ventures
  • Transaction includes both men's and women's cricket teams
  • Concludes Diageo's strategic review launched last year

Full Details

The U.K. drinks giant Diageo announced Wednesday that its Indian subsidiary United Spirits has reached an agreement to sell full ownership of Royal Challengers Sports Private Limited to a consortium backed by private equity firm Blackstone and Germany-based venture capital company Bolt Ventures. The deal values the franchise at roughly 166.6 billion Indian rupees (approximately $1.77 billion), making it one of the largest cricket franchise transactions in history. The sale concludes a strategic review of the business that Diageo launched last year. Royal Challengers Bengaluru operates both men's and women's cricket teams, with the men's team being one of the most popular franchises in the Indian Premier League despite never winning the championship. The consortium includes Blackstone's perpetual private equity fund, giving it significant long-term financial backing.

Why It Matters

This sale signals major consolidation in Indian cricket franchise ownership, with private equity players increasingly dominating the sport's commercial landscape. The $1.77 billion valuation sets a new benchmark for T20 franchise valuations globally.

Sourcewsj.com

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