Media titans Disney-Reliance merger gets green light from India’s CCI

The Competition Commission of India (CCI) has conditionally approved the Rs700 billion (US$8.5 billion) merger between Disney and Reliance Industries, “subject to the compliance of voluntary modifications”.

To be completed in the next six months, the merger is expected to create India’s biggest entertainment player and a new media juggernaut that can compete with the likes of Sony, Netflix, and Amazon. 

With billionaire Mukesh Ambani’s Reliance Industries having a majority stake, the new merged entity is poised to dominate the highly lucrative sports market with broadcasting rights for a majority of India’s sports events, including cricket, the country’s most passionately-followed sports.

One of the reasons that the CCI had been deliberating over approving the merger was concerns over the control the two companies would exert over broadcasting rights for cricket. 

To appease these concerns, the two companies have reportedly pledged not to raise advertising rates “excessively” for cricket match streams. Besides cricket, Reliance and Disney will also have the Indian broadcast rights for tennis’ Wimbledon, racing’s MotoGP, and football’s English Premier League.

Lauding the merger for “heralding a new era in the Indian entertainment industry”, Ambani said earlier this year, “We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation.”

Bob Iger, CEO of Walt Disney Co, added, “Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment, and sports content.”