Diageo Said To Be Weighing Stake Sale In Indian Premier League Cricket Team RCB At $2B Valuation

The report, which cited people familiar with the matter, said a final decision on the stake sale has not been made.

British distiller Diageo Plc (DEO) is exploring a partial or full sale of its stake in Indian Premier League (IPL) cricket club Royal Challengers Bengaluru (RCB) at a valuation of up to $2 billion, Bloomberg News reported.

Diageo owns the team through its Indian unit, United Spirits (UNITDSPR.NSE).

RCB was initially acquired by Vijay Mallya, a beer tycoon whose Kingfisher Airlines folded in 2012 after failing to pay creditors. 

Diageo eventually took over RCB after purchasing Mallya's spirits business.

The report, which cited people familiar with the matter, said a final decision on the stake sale has not been made, and the plan might even fall through.

The report follows RCB's maiden IPL title last week, which came after 18 years, as the tournament continues its rise as one of the most-watched sporting leagues globally.

The annual tournament features 10 teams, some owned by business tycoons and celebrities, and includes top cricket talent worldwide.

If the sale goes through, it could set a benchmark for future deals.

It would also unlock crucial capital for Diageo, which faces tepid sales due to a consumer slowdown and the effect of the U.S. tariff policy.

The company is said to be streamlining operations and reassessing non-core assets globally.

Diageo's U.S. shares are down 15.3% year-to-date.

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