SUMMARY
- The CCI has approved the ₹70,350 crore Reliance-Disney India merger, subject to voluntary modifications to prevent dominance in cricket broadcasting.
- The merger will form one of India’s largest media entities, integrating the operations of Reliance, Viacom18, and Disney’s Star India.
- Nita Ambani will chair the merged entity, which is expected to be finalized by late 2024 or early 2025, with RIL holding a controlling stake.
The Competition Commission of India (CCI) has granted approval to the ₹70,350 crore ($8.5 billion) merger between Reliance Industries Ltd (RIL) and Disney‘s Indian media assets, subject to certain voluntary modifications. This merger is set to create one of India’s largest media powerhouses, combining the operations of Reliance, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd, and Star Television Productions Ltd.
In a statement on the X platform, CCI confirmed, “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, pledged by the merging parties, are expected to facilitate swift regulatory approval. Dharmendra Kumar, former CCI chairperson, emphasized the significance of the merger, noting its potential to form a substantial entertainment conglomerate with an extensive viewership base.
Kumar added that CCI’s concerns revolved around the creation of a dominant player in the cricket broadcasting market. The modifications aim to mitigate any negative impact on competition while ensuring wider access to cricket coverage across India. Notably, Disney-Star currently holds exclusive digital and TV rights to International Cricket Council (ICC) events from 2024 to 2027 and Indian Premier League (IPL) broadcasting rights from 2023 to 2028, while Jio has secured IPL streaming rights.
The merger, initially announced in February, involves combining Viacom18’s media operations with Star India Pvt Ltd (SIPL) through a court-approved scheme of arrangement. This joint venture will hold an estimated post-money valuation of ₹70,350 crore, with RIL injecting ₹11,500 crore ($1.4 billion) to support the growth strategy of the new entity. The merger is expected to be finalized by the last quarter of 2024 or the first quarter of 2025.
The merged entity will feature a 10-member board, with five nominees from RIL, three from Disney, and two independent directors. Nita Ambani is set to assume the role of Chairperson, while former Walt Disney executive Uday Shankar will join as Vice Chairperson. The ownership structure will see RIL holding a 16.34% stake, Viacom18 with 46.82%, and Disney retaining 36.84%, with RIL maintaining control.
The timing of the CCI’s decision is crucial, coming just ahead of Reliance Industries’ 47th Annual General Meeting (AGM) on August 29. RIL shares remained steady at ₹2,999 on the NSE, and the announcement came after the market had closed.
