Mega Merger of Reliance's media assets with Walt Disney
Walt Disney Co and Reliance Industries have won CCI approval for an $8.5 billion merger of their Indian media assets subject to some modifications. Reliance-Disney aims to create India's biggest entertainment player to compete with Sony, Netflix and Amazon with 120 TV channels and two streaming services. The proposed combination involves Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited and Star Television Productions Limited.
The Competition Commission of India (CCI) sent a warning notice to the companies earlier this month expressing concern that a merged entity would have a tight grip on most cricket rights for TV and streaming in India, and could hurt advertisers. The two companies have since offered concessions to the CCI, including a commitment to not raise advertising rates unreasonably for streamed cricket matches.
The merged company will be majority owned by Asia's richest man Mukesh Ambani's Reliance which along with its affiliates will hold a 63.16 percent stake.
