India’s Competition Commission has approved Reliance Industries’ merger with Disney’s Indian media assets, a deal valued at Rs 70,350 crore (approximately $8.5 billion). The green light comes with conditions requiring the companies to implement certain voluntary changes.
The CCI shared the approval on social media, noting, “The commission has approved the merger involving Reliance Industries Ltd, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd, and Star Television Productions Ltd, provided the parties adhere to the agreed voluntary modifications.”
Dharmendra Kumar, a former CCI chairperson, explained that these modifications should expedite the regulatory process. “This development is quite significant as it will result in a large entertainment group with an extensive viewership,” Kumar added.
Concerns about creating a dominant player, especially in cricket broadcasting, likely prompted the modifications. These changes aim to prevent any adverse effects on competition and ensure broader access to cricket coverage.
The merger, which is set to combine Viacom18’s media operations with Star India Pvt Ltd through a court-approved process, is expected to be finalized by late 2024 or early 2025. Reliance will inject Rs 11,500 crore (about $1.4 billion) into the joint venture.
Once completed, the new entity will challenge major competitors like Sony, Netflix, and Amazon, operating 120 TV channels and two streaming services. The board will consist of 10 members: five from Reliance, three from Disney, and two independent directors. Nita Ambani will chair the merged company, with former Walt Disney executive Uday Shankar as Vice Chairperson.
Ownership will be split with Reliance holding 16.34%, Viacom18 46.82%, and Disney 36.84%, with Reliance retaining control. Reliance Industries’ shares closed at Rs 2,999 on the NSE on August 28, following the CCI’s announcement.