New Delhi: In a groundbreaking move, the Competition Commission of India (CCI) has given provisional approval to a massive Rs 70,350 crore merger involving Reliance Industries Limited (RIL) and its media arms Viacom18 Media Pvt Ltd (Viacom18) and Digital18 Media Limited with The Walt Disney Company’s (TWDC) Star Media Private Limited (SIPL) and Star Television Productions Limited (STPL). This approval is subject to “voluntary modifications” proposed by the companies, according to a CCI press release.
While the exact details of these modifications have not been disclosed, reports suggest that RIL has made concessions, including a commitment to avoid “unreasonable” rate hikes for advertisements during cricket matches.
The merger will result in SIPL, currently a wholly-owned subsidiary of TWDC, becoming a joint venture (JV) co-owned by RIL, Viacom18, and TWDC’s existing subsidiaries, the CCI stated.
This strategic combination is poised to reshape the television and streaming markets in India. According to Jefferies Group, the new venture could potentially control around 40% of the streaming and TV advertising market in the country.
Additionally, the merger is expected to consolidate cricket broadcasting rights, with Indian Premier League (IPL) rights currently split between Star and Viacom18 for TV streaming.
Speaking to shareholders, RIL’s Chairman and Managing Director Mukesh D. Ambani emphasized the significance of this merger, stating, “Just like Jio and retail, our expanded media business will be an invaluable growth center in the Reliance ecosystem.” He also reaffirmed RIL’s commitment to bringing the benefits of Artificial Intelligence (AI) to every Indian, underscoring the company’s progress in this ambitious endeavor.
