With a few voluntary changes, India’s competition authority has authorized Reliance Industries Ltd’s merger with Disney’s Indian media holdings for Rs 70,350 crore, creating the foundation for a media behemoth.
The Competition Commission of India (CCI) stated in a post on the X platform that it “approves the proposed combination involving Reliance Industries Ltd, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd, and Star Television Productions Ltd, subject to the compliance of voluntary modifications.”
The parties’ voluntary changes will receive quick regulatory approval, Dharmendra Kumar, the former chairman of the CCI, Ltd., stated in an interview .
“This will result in a large entertainment conglomerate with a large viewership base, which is a very significant development,” Kumar stated.
According to Kumar, the CCI was probably worried about the emergence of a major participant in the cricket broadcasting market. He went on to say that the suggested changes most likely intended to maintain wider access to cricket coverage throughout India while avoiding any negative effects on competition.
Jio has acquired the IPL streaming rights, while Disney-Star will get exclusive digital and TV rights to ICC games from 2024 to 2027 and IPL broadcasting rights from 2023 to 2028.
The 47th Annual General Meeting (AGM) of Reliance Industries is scheduled on August 29. The CCI’s judgment takes effect on the eve of the AGM.
In an attempt to establish India’s largest TV and digital streaming company, Viacom18, a Reliance Industries unit, and Disney’s Star India combined their media.
With 120 TV channels and two streaming services, the Reliance-Disney merger will compete with Sony, Netflix, and Amazon.
Disney has nominated three members, RIL five, and there will be two independent directors on the new board of ten. It is anticipated that the merger will be finalized in either the final quarter of 2024 or the first quarter of 2025.
The combined company will be led by Nita Ambani, with Uday Shankar, a former Walt Disney executive, serving as vice chairman.