The Competition Commission of India (CCI) on Wednesday approved the ₹70,350-crore merger of Reliance Industries and Disney’s Indian media assets, subject to certain voluntary modifications.
The merger will create India’s biggest entertainment player to compete with Sony, Netflix, and Amazon with 120 TV channels and two streaming services.
The regulatory approval comes a day before chairman Mukesh Ambani is set to address Reliance shareholders at its AGM, where he is expected to make major announcements relating to Jio and Reliance Retail.
“Commission approves the proposed combination involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited and Star Television Productions Limited, subject to the compliance of voluntary modifications,” the CCI said in a post on X.
The CCI, however, did not reveal any voluntary changes made to the original agreement by the two parties.
The antitrust watchdog had expressed its concern that a merged entity would control most cricket rights for TV and streaming in India, and could hurt advertisers.
Reliance and Disney have spent roughly $9.5 billion in recent years on TV and streaming rights for the world’s richest cricket tournament, the Indian Premier League, the International Cricket Council’s matches such as the One-day and T20 World Cups, and matches organised by the Indian cricket board.
The two companies have offered concessions to the CCI, including a commitment to not raise advertising rates unreasonably for streamed cricket matches.
They also pledged not to bundle and sell advertising slots for different cricket tournaments, reports quoting sources said.
The CCI has to pass a prima facie order within 30 calendar days of the merger being notified to the regulator.
However, it has the power to conduct an in-depth inquiry to ascertain possible anti-competitive issues, and in that case, there will be a wider public consultation.
“While the merger is poised to significantly elevate India’s entertainment landscape, it is crucial that regulatory oversight remains strong to ensure fair competition and protect consumer interests. Striking this balance will be essential for the sustained growth and success of the Indian media industry,” Sindhuja Kashyap, partner, King Stubb & Kasiva, Advocates and Attorneys, said.
Karan Taurani, an analyst at India’s Elara Capital, said the deal should close within six months as it still needs approval from an Indian companies tribunal, which is expected to be granted.
Disney and Reliance’s merged entity will also own Indian broadcast rights for the Wimbledon tennis championship, MotoGP and the English Premier League, among other sporting events.
In February 2024, RIL subsidiary Viacom18 and Star India, Disney’s Indian unit, announced the merger of their businesses.
Reliance and its affiliates will hold 63.16 per cent of the combined entity. Disney will hold the rest 36.84 per cent.
With inputs from Reuters
