Reliance-Disney Merger Approved by CCI, Creating Media Powerhouse
In a landmark decision, India’s Competition Commission (CCI) has approved Reliance Industries Ltd’s Rs 70,350-crore merger with Disney’s Indian media assets, paving the way for the formation of a major entertainment conglomerate. The approval is granted subject to certain voluntary modifications aimed at mitigating competitive concerns, particularly in the cricket broadcasting sector. The CCI’s endorsement follows pledges by the involved parties to ensure fair competition and broader access to cricket coverage across the country.
The merger, which combines Reliance’s Viacom18 with Disney’s Star India, will create one of India’s largest TV and digital streaming platforms, with a portfolio of 120 TV channels and two streaming services. The joint venture, valued at $8.5 billion, will see Reliance injecting Rs 11,500 crore to support its growth strategy. The new entity will be controlled by Reliance, with RIL holding 16.34%, Viacom18 46.82%, and Disney 36.84%. Nita Ambani is set to chair the merged entity, with former Walt Disney executive Uday Shankar as Vice Chairperson.
This strategic consolidation is expected to significantly impact the Indian media landscape, intensifying competition with other major players like Sony, Netflix, and Amazon. The merger is anticipated to be finalized by late 2024 or early 2025, with Reliance’s stock showing little change following the CCI’s announcement.
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