New Delhi: The Competition Commission of India (CCI) on Wednesday approved the merger of the media assets of Reliance Industries Limited (RIL) and Walt Disney Co. The merger has been cleared by the CCI with certain voluntary modifications that are proposed by the two parties. This merger is expected to create the largest media empire in the country.
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. pic.twitter.com/S2JVzw2VgR
— CCI (@CCI_India) August 28, 2024
The merger deal was announced about six months ago. The CCI, took to X, formerly Twitter, and said that it has cleared 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".
Under the deal, Reliance and its affiliates will hold a 63.16 per cent stake in the combined entity that will house two streaming services and 120 television channels. Walt Disney will hold the remaining 36.84 per cent stake. The combined entity will house two streaming services and 120 television channels. However, the Competition Commission did not disclose the voluntary modifications in the original deal made by the two parties.
RIL has agreed to invest close to Rs 11,500 crore into the joint venture to give it the muscle to fight rivals like Japan's Sony and Netflix. Nita Ambani, wife of billionaire and Reliance chairman Mukesh Ambani, will head the joint venture, while Uday Shankar will be the vice chairperson. Shankar is a former top Disney executive and has a joint venture with James Murdoch called Bodhi Tree.
CCI had raised various queries related to the deal, particularly with respect to the proposed combined entity's cricket broadcasting rights and OTT presence amid anti-competitive concerns. (with agency inputs)
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