New Delhi (TIP)- India‘s competition watchdog has approved Reliance Industries Ltd’s Rs 70,350-crore merger with Disney’s Indian media assets, subject to certain voluntary modifications, setting the stage for a media powerhouse.
“Commission 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 Competition Commission of India (CCI) said in a post on X platform.
The voluntary modifications pledged by the parties will lead to swift regulatory approval, Dharmendra Kumar, former chairperson of the CCI, Ltd, told CNBC-TV18 in an interview.
“This is a very significant development, as it will lead to a large entertainment conglomerate with a large viewership base,” Kumar said.
Kumar said that the CCI was likely concerned about the formation of a dominant player in the cricket broadcasting space. He added that the proposed modifications were likely aimed at preventing any adverse impact on competition while ensuring broader access to cricket coverage across India.
Disney-Star holds the exclusive digital and TV rights to ICC events from 2024 to 2027 and IPL broadcasting rights from 2023 to 2028), while Jio has secured IPL streaming rights.
The CCI’s decision comes on the eve of Reliance Industries’ 47th AGM on August 29, setting the stage for the annual shareholders’ meeting.
In February, Viacom18, a unit of Reliance Industries, and Disney’s Star India merged their media businesses in a bid to create India’s largest TV and digital streaming entity. Under the terms of the agreement Viacom18’s media operations will be merged with Star India Pvt Ltd (SIPL) through a court-approved scheme of arrangement. The joint venture, valued at Rs 70,350 crore ($8.5 billion) on a post-money basis, will see RIL injecting Rs 11,500 crore ($1.4 billion) into the venture to support its growth strategy.
The Reliance-Disney combine will compete with Sony, Netflix and Amazon, with 120 TV channels and two streaming services. The new board will have 10 members, with RIL nominating five, Disney three, and two independent directors. The merger is expected to be completed in the last quarter of 2024 or the first quarter of 2025.
Nita Ambani will assume the role of Chairperson of the merged entity, with former Walt Disney executive Uday Shankar, joining as Vice Chairperson. The joint venture’s ownership structure will consist of RIL holding 16.34 percent, Viacom18 with 46.82 percent, and Disney at 36.84 percent, with RIL retaining control under the merger terms.
On August 28, RIL’s shares were little changed at Rs 2,999 on the NSE. CCI’s announcement came after the end of trading in Mumbai.
CCI greenlights Rs 70,350-cr Reliance-Disney India merger
