The Competition Commission of India (CCI) on Tuesday, October 22, published the 48-page detailed order approving the mega media assets merger of Reliance Industries and Walt Disney, entailing various conditions, including the divestment of seven TV channels.
As part of seeking the regulatory watchdog’s approval, the parties have voluntarily agreed not to bundle TV ad slots for IPL, ICC, and BCCI cricketing rights until the end of existing rights. Also, the companies will sell seven TV channels, including Hungama and Super Hungama, as part of the $8.5-billion merger deal.
Among other conditions, the companies have voluntarily agreed not to bundle the television ad slot sales for all three cricketing rights available with them—IPL, ICC, and BCCI—for the remaining tenure of the existing rights.
“The parties will not bundle OTT ad slot sales for all three cricketing rights available with the parties, i.e. IPL, ICC and BCCI for the balance tenure of the existing rights,” said the 48-page order. The parties have undertaken not to increase the advertisement rates to an unreasonable level on their TV and streaming platforms for the ICC and IPL events until they hold the current rights.
Reliance-Disney merger: I&B approval
Last month, the Ministry of Information and Broadcasting (I&B) approved the oil-to-telecom conglomerate’s transfer of channels ahead of the merger with Disney. The approval was given for the transfer of licenses relating to non-news and current affairs television channels. As part of the move, the channels held by Viacom 18 Media Pvt Ltd will be transferred to Star India Pvt Ltd.
“It is hereby informed that the Ministry of Information and Broadcasting (I&B), Government of India, vide its order dated September 27, 2024, has granted its approval for the transfer of Licenses relating to Non News & Current Affairs TV channels held by Viacom18 Media in favour of Star India subject to conditions laid by Competition Commission of India,” said Reliance Industries Ltd (RIL) in a regulatory filing to the stock exchanges.
On August 28, CCI said it had approved the merger of billionaire Mukesh Ambani-led Reliance Industries and The Walt Disney Co’s media assets to create the country’s largest media empire, worth over ₹70,000 crore. The deal had faced scrutiny by the antitrust regulator, and the approval came after the parties proposed certain modifications to the original transaction structure.
In February, Reliance Industries, helmed by Asia’s richest person, signed a binding agreement with Disney to merge their media operations in India. This move cemented Reliance Industries’ dominant position in the sector and gave them the lion’s share of the coveted cricket broadcast rights.
Reliance is all set to control over 60 per cent of the new combined unit — 16 per cent directly and 47 per cent via the Viacom18 Media business it largely owns — while 37 per cent goes to Disney. The combined entity will hold two streaming services and 120 television channels. Reliance owns Viacom18 Media and Digital18, and Disney controls Star India and Star Television.
Reliance reported a 3.6 per cent year-on-year (YoY) decline in consolidated net profit to ₹19,101 crore during the July-September quarter from ₹19,820 crore in the corresponding quarter a year ago. However, sequentially, or quarter-on-quarter (QoQ), the behemoth’s consolidated profit rose by 9.5 per cent. In Q1FY25, the company reported a profit of ₹17,448 crore.
