The Competition Commission of India (CCI) granted provisional approval for the ₹70,350 crore merger involving Reliance Industries Ltd. (RIL), its subsidiaries Viacom18 Media Private Limited and Digital18 Media Limited, and The Walt Disney Co.’s Star India Private Ltd.
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On August 28, 2024, the Competition Commission of India (CCI) granted provisional approval for a significant merger in the Indian media landscape. The deal, valued at ₹70,350 crore, involves a combination of Reliance Industries Ltd. (RIL) and its subsidiaries Viacom18 Media Private Limited (Viacom18) and Digital18 Media Limited with The Walt Disney Co.’s (TWDC) Star India Private Ltd. (SIPL) and Star Television Productions Ltd. (STPL). This landmark decision, however, comes with a caveat: the merger is subject to the adherence to certain voluntary modifications, as detailed by the CCI in its press release.
Though a comprehensive order has yet to be issued, and the specific modifications remain undisclosed, reports suggest that Reliance has proposed several concessions. Notably, these include a commitment to prevent “unreasonable” rate increases for advertisements during high-profile cricket matches, a critical aspect given the sport’s immense popularity in India.
The merger, once finalized, will result in SIPL, currently a wholly owned subsidiary of TWDC, becoming a joint venture. This new entity will be co-owned by RIL, Viacom18, and existing TWDC subsidiaries. This consolidation is set to revolutionize India’s television and streaming sectors, with the Jefferies Group projecting that the joint venture could dominate approximately 40% of the TV and streaming advertising market.
One of the most significant impacts of this merger will be on cricket broadcasting. Presently, the Indian Premier League (IPL) broadcasting rights are divided between Star and Viacom18 for TV and streaming platforms, with Star also holding exclusive rights to other key cricket tournaments. The merger could streamline these rights, potentially altering the competitive dynamics of cricket broadcasting in India.
The combined entity will also significantly influence the broader media landscape. With Viacom18 and Disney collectively managing around 120 TV channels and owning platforms such as JioCinema and Disney+ Hotstar, the merger represents a formidable consolidation of media power. This merger not only reinforces the strong presence of Reliance and Disney in the Indian market but also raises questions about competition and diversity in the media sector.
As the CCI’s detailed order is awaited, industry stakeholders and viewers alike are keenly watching how this merger will reshape the landscape of television and streaming in India, particularly in relation to sports broadcasting and advertising dynamics.
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