The Competition Commission of India has approved the agreement, which was announced half a year ago, subject to some changes that the parties suggested.
The combination of Reliance Industries’ and Walt Disney Co.’s media holdings has been allowed by the Competition Commission of India (CCI) to form the greatest media empire in the nation, effective today, August 28.The CCI approved the transaction, which was announced half a year ago, subject to some changes that the parties suggested.
In an article on X, the regulator stated that it has authorized 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” .
As a result of the agreement, Reliance and its affiliates would own 63.16 percent of the combined company, which will include 120 television channels and two streaming services.
The remaining 36.84 percent will be owned by Walt Disney.
With this combination, Walt Disney will own the remaining 36.84 percent of the company, making it the biggest media company in India. In order to give the joint venture the strength to take on competitors like Netflix and Sony of Japan, Reliance Industries has also committed to invest almost Rs 11,500 crore in it.The joint venture will be led by Nita Ambani, the rich wife of Reliance chairman Mukesh Ambani, with Uday Shankar serving as vice chairman. Shankar, a former senior Disney executive, and James Murdoch co-own Bodhi Tree, a joint venture.
Concerned about anti-competitive practices, the CCI had a number of reservations about the merger, namely regarding the merged entity’s potential OTT footprint and cricket broadcasting rights. In accordance with regulations, CCI must issue a prima facie order no later than thirty calendar days after the regulator is informed of the merger.
It can, however, carry out a thorough investigation to identify potential anti-competitive issues; in that instance, a broader public consultation would take place.
In the rapidly expanding and fiercely competitive media and entertainment sector, merger activity is gradually picking up steam as a result of a tendency toward financial consolidation.
The highly anticipated Sony and Zee merger fell through earlier this year due to a number of problems. The two firms declared on Tuesday that their disagreement had been resolved amicably.
Network 18, which owns TV18 news stations, a variety of entertainment channels (under the ‘Colors’ brand), and sports channels, is currently home to Reliance’s media endeavors. NW18 publishes periodicals and has interests in bookmyshow, moneycontrol.com, and other websites. The news networks CNBC and CNNNews are owned by its subsidiary NW18.
Separately, Reliance controls the majority shares in Den and Hathway, two publicly traded cable distribution firms, as well as JioStudios, a movie producing arm.Following 21st Century Fox’s acquisition of its entertainment assets at a USD 71.3 billion valuation, which resulted in the takeover of Star India and Hotstar, Disney + Hotstar was introduced in India in 2020. Along with sports networks like Star Sports, it hosted entertainment and movie channels like StarPlus and StarGold.
Disney + Hotstar lost the bid for the digital streaming rights in the 2023–27 cycle, which was won by Reliance-backed Viacom18 for USD 720 billion, 12.92 percent higher than what Star India had paid on average per match value. This is despite the fact that Disney + Hotstar initially rapidly increased their subscriber base with the streaming rights of cricket matches (IPL, World Cup).
