CCI Approves Rs 70,350-Crore Reliance-Disney India Merger, Paving the Way for a Media Powerhouse
In a landmark decision, India’s Competition Commission (CCI) has given the green light to Reliance Industries Ltd’s Rs 70,350-crore merger with Disney’s Indian media assets, subject to certain voluntary modifications. This approval sets the stage for the creation of one of India’s largest media conglomerates.
The CCI announced its decision on the X platform, stating, “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.” These modifications, voluntarily pledged by the merging parties, have facilitated swift regulatory approval.
Dharmendra Kumar, former chairperson of the CCI, described the merger as a significant development, noting that it would create a massive entertainment entity with a vast viewership base. He added that the CCI likely had concerns about the formation of a dominant player in the cricket broadcasting space, which led to the proposed modifications aimed at ensuring competition and broader access to cricket coverage across India.
The merger brings together powerful assets, with Disney-Star holding 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 combined entity will compete with industry giants like Sony, Netflix, and Amazon, operating 120 TV channels and two streaming services.
The timing of the CCI’s approval is significant, coming just before Reliance Industries’ 47th Annual General Meeting (AGM) on August 29. The merger, first announced in February, involves the merging of Viacom18’s media operations with Star India Pvt Ltd (SIPL) under a court-approved scheme of arrangement. The joint venture, valued at Rs 70,350 crore ($8.5 billion), includes an Rs 11,500 crore ($1.4 billion) investment from Reliance Industries to support its growth strategy.
The new board of the merged entity will consist of 10 members, with RIL nominating five, Disney three, and two independent directors. Nita Ambani will serve as Chairperson, with former Walt Disney executive Uday Shankar joining as Vice Chairperson. The ownership structure will see RIL holding 16.34 percent, Viacom18 with 46.82 percent, and Disney at 36.84 percent, with RIL retaining control under the merger terms.
The merger is expected to be finalized by late 2024 or early 2025, positioning the Reliance-Disney combine as a formidable player in India’s media landscape.