Diageo weighs Royal Challengers Bengaluru stake sale, eyes $2 bn valuation

British spirits giant Diageo Plc is reportedly considering the sale of part or all of its stake in the Indian Premier League (IPL) cricket team, Royal Challengers Bengaluru. This potential move comes as Diageo aims to optimize its portfolio and focus on its core beverages business. The company is eyeing a valuation of $2 billion for the franchise, reflecting the growing financial clout and global appeal of the IPL. Royal Challengers Bengaluru, known for its star-studded lineup and passionate fan base, has become a prominent name in the cricketing world. Diageo's involvement with the team has been part of its strategy to capitalize on the massive popularity of cricket in India, aligning its brand with one of the country's most beloved sports. However, as the league continues to expand, Diageo seems inclined to reassess its investment strategy to ensure it aligns with long-term corporate goals. The potential stake sale is likely to attract interest from various investors, given the lucrative nature of IPL franchises. Analysts suggest that the sale could provide Diageo with significant capital to reinvest in its primary business sectors or explore new opportunities within the rapidly evolving global market. As discussions progress, the outcome could have notable implications for both Diageo's financial strategy and the future trajectory of Royal Challengers Bengaluru.

— Authored by Next24 Live