The CCI has said that the merger is subject to the compliance of voluntary modifications
Earlier this month, RIL and Walt Disney proposed a two-year freeze on advertising rate cards to secure the Competition Commission of India's approval for their Star India and Viacom18 merger
Reliance Industries Ltd and The Walt Disney Company inked a deal earlier this year to set up a joint venture that would combine the businesses of Viacom18 and Star India Private Limited
The Competition Commission of India (CCI) has granted its approval to the $8.5 Bn merger of Reliance’s media operations and Disney India.
In a statement, the CCI said, “Commission approves 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.”
It remains to be seen what the voluntary modifications are for the merger deal. It would become clear after the antitrust watchdog releases a detailed order.
The proposed combination aims to merge the entertainment businesses of Viacom18, a part of the Reliance Industries Ltd (RIL) group, and Star India Private Limited (SIPL), which is wholly owned by The Walt Disney Company (TWDC).
Following the transaction, SIPL will become a joint venture (JV) jointly held by RIL, Viacom18, and TWDC’s existing subsidiaries.
RIL and The Walt Disney Company inked a deal earlier this year to set up a joint venture (JV).
Earlier this month, RIL and Walt Disney reportedly proposed a two-year freeze on advertising rate cards to secure the Competition Commission of India’s approval for their Star India and Viacom18 merger. This was discussed internally to offer price stability to advertisers and agencies during the period.
The merged entity would operate over 100 TV channels and streaming platforms Disney+ Hotstar and JioCinema. The entity would also have exclusive rights to distribute Disney’s content in India, as well as sports content owned by Viacom18. Additionally, RIL announced plans to invest INR 11,500 Cr in the joint venture to support its growth.
On the financial side, Walt Disney previously disclosed that it had incurred over $2 Bn in charges for the second quarter of 2024 due to goodwill impairments related to Star India, stemming from the merger with Reliance Industries.
The merger would also create an OTT behemoth. Earlier this month, a report said that RIL is mulling having only one OTT platform, JioCinema, after the merger.
JioCinema and Disney+ Hotstar compete with the likes of Netflix, Amazon’s Prime Video, SonyLIV, among others, in the crowded OTT market of India.
