The Competition Commission of India (CCI) has provisionally approved the merger between Reliance India Limited (RIL) and its subsidiaries (Viacom18 Private Limited, Digital18 Media Limited) with The Walt Disney Company (TWDC) and its subsidiaries (Star India Private Limited, Star Television Productions Limited).
With a press release posted on the social media platform X, formerly Twitter, the anti-trust regulator approved the merger valued at around INR 70,350 crore, subject to the companies complying with certain voluntary modifications.
While details regarding the modifications have not been made public just yet, Reuters reported earlier last week that Reliance has offered a commitment towards avoiding “unreasonable” increase in advertisement rates during cricket matches, a strong concern given how the merged company will be dominating cricket broadcasting across ICC tournaments as well as the IPL.
The merger is expected to be completed in the last quarter of 2024 or the first quarter of 2025. This will create the largest media conglomerate in the country with two streaming services and 120 television channels.
Notably, in terms of ownership, RIL and its affiliates will hold 63.16% share of the merged compnay, and TWDC will hold the remaining 36.84% stake. Furthermore, RIL has also announced its plan to invest about INR 11,500 crore into this joint venture to compete against rivals such as Sony and Netflix. Leadership wise, Nita Ambani from RIL will head the joint venture, whereas Uday Shankar, a former top Disney executive, will be the Vice Chairperson. The new board will have 10 members, where RIL will be nominating five members, TWDC will nominate three members, whereas two independent board members will also be appointed.