Reliance, Disney seek CCI nod for $8.5 billion merger: Report

RIL, Disney seek CCI nod: Reliance Industries and Walt Disney have initiated the process of seeking antitrust clearance for their $8.5 billion media merger in India. They have asserted that their combined influence, particularly in cricket broadcasting, will not adversely affect advertisers, according to two sources familiar with the matter who spoke to Reuters.

The merger, announced in February, is expected to undergo rigorous scrutiny as it would establish the country’s largest entertainment conglomerate, boasting 120 TV channels and two streaming services. Additionally, the merged entity would possess highly coveted cricket rights.

Reliance and Disney have informed the Competition Commission of India (CCI) that the cricket rights were acquired separately through a competitive bidding process. They contend that other competitors will have the opportunity to bid for these rights when they expire in 2027 and 2028, the sources disclosed on condition of anonymity due to the confidential nature of the approval process.

While the CCI will now review the confidential filing, the duration of the approval process may vary. Typically, it takes several weeks, but it could be extended if the watchdog requires additional information and isn't satisfied with the initial submission.

Reliance, Walt Disney, and the CCI have yet to respond to requests for comment.

Currently, Disney and Reliance hold digital and TV cricket rights valued at billions of dollars for prestigious events such as the Indian Premier League and International Cricket Council matches. This dominance has raised concerns about potential leverage over advertisers and consumers.

The merged entity is projected to capture a 40 per cent share of the advertising market in TV and streaming segments, according to estimates by Jefferies.

In response, Reliance and Disney have assured the CCI that advertisers will not be negatively impacted. They argue that cricket enthusiasts can access content on various rival platforms, including YouTube and Meta, thereby diluting any monopoly concerns.

Furthermore, they contend that Indian consumers consume content across multiple channels, social media platforms, and streaming apps, ensuring advertisers have diverse avenues to reach their target audience.

The merger between Reliance and Disney is poised to reshape $28 billion media and entertainment industry, intensifying competition with players such as Netflix, Amazon Prime, Zee Entertainment, and Sony.

(With Reuters inputs)