CCI approves $8.5 billion Disney-Reliance media assets merger

CCI approves Reliance-Disney Merger: The Competition Commission of India has approved the $8.5 billion merger of Reliance Industries and Disney India’s media assets, subject to certain voluntary modifications, it said in a post on social media platform X on Wednesday.

"C-2024/05/1155 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," CCI wrote in a tweet on August 28.  

Under the terms of the agreement, Reliance’s Viacom18’s media operations will be merged with Disney-owned Start India Private Limited. Reliance will inject Rs 11,500 crore in the joint venture which will value over Rs 70 thousand crore on a post-money basis, supporting its growth strategy. 

Previously the national antitrust body has reached a preliminary conclusion that the merger between Reliance and Walt Disney’s media assets could harm competition due to their significant control over cricket broadcast rights, according to four sources who spoke to Reuters on Tuesday.

The Competition Commission of India (CCI) had informed Disney and Reliance of its concerns, asking the companies to justify why a full investigation should not be initiated, one of the sources revealed.

Antitrust experts had previously warned that the merger, announced in February, would likely face rigorous scrutiny, as it would create India’s largest entertainment company. The combined entity would compete with Sony, Zee Entertainment, Netflix, and Amazon, boasting 120 TV channels and two streaming services.