India’s Competition Commission (CCI) delivered a decisive approval for the merger between Reliance owned Viacom 18 and The Walt Disney Company’s Indian media assets. This deal, valued at approximately ₹70,350 crore (around $8.5 billion), will lead to the formation of India’s largest media conglomerate.
“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.
The merger integrates multiple entities, including Reliance’s Viacom18 Media Pvt Ltd, Digital18 Media Ltd, and Disney’s Star India Pvt Ltd, along with Star Television Productions Ltd. The agreement stipulates that Viacom18’s media operations will be consolidated with Star India through a court-sanctioned scheme of arrangement. Reliance Industries is set to invest ₹11,500 crore (about $1.4 billion) into the newly formed entity.
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Upon completion, the combined entity will manage a vast portfolio comprising 120 television channels and two major streaming services. This amalgamation positions the new conglomerate to rival other industry giants such as Sony, Netflix, and Amazon Prime Video. The ownership structure will allocate 63.16% of the stake to Reliance Industries, 36.84% to Disney, and the remaining 7.5% to Bodhi Tree, a joint venture involving James Murdoch and Uday Shankar, the former CEO of Star India.
The CCI’s approval followed extensive scrutiny of the merger’s potential implications for market competition. A primary concern was the dominance the combined entity could exert in the cricket broadcasting arena. Disney-Star currently holds exclusive digital and TV rights for ICC events from 2024 to 2027 and IPL broadcasting rights from 2023 to 2028. Concurrently, Reliance’s Jio has secured IPL streaming rights, leading to fears of monopolistic control over cricket broadcasts.
In response to these concerns, Reliance and Disney proposed several voluntary modifications to the merger agreement. While the specific details of these modifications have not been disclosed, they are intended to address potential anti-competitive impacts and ensure that cricket coverage remains widely accessible across India. With the CCI’s approval secured, the merger now awaits final regulatory clearances from the National Company Law Tribunal (NCLT) and the Ministry of Information and Broadcasting (MIB). The integration phase is anticipated to begin in the last quarter of 2024 or the first quarter of 2025.
The merger is a win for both Reliance and Disney, aiming to strengthen their positions in India’s dynamic media market. For Reliance Industries, this deal aligns with its broader strategy to expand its media footprint and leverage its digital content capabilities. The financial investment will provide the merged entity with the resources needed to scale operations and compete effectively with established rivals. For Disney, the merger represents an opportunity to consolidate its Indian media presence and enhance its content offerings. By integrating with Reliance’s extensive distribution networks and digital platforms, Disney can broaden its audience reach and improve its market position.
