CCI Approves $8.5-Billion Reliance-Disney Merger

 CCI Approves $8.5-Billion Reliance-Disney Merger
Photo: Business Today 23.10.2024 206

Reliance-Disney merger: CCI approves $8.5-billion deal in detailed order, TV ad slots for cricket to not be bundled.

Competition Commission of India (CCI) on Tuesday published the 48-page detailed order approving the mega media assets merger of Reliance Industries and Walt Disney, entailing various conditions, including divestment of seven TV channels.

As part of seeking the regulator's approval, the parties have voluntarily agreed that they will not bundle TV ad slots for IPL, ICC and BCCI cricketing rights till the end of existing rights.

Also, the parties will sell seven TV channels, including Hungama and Super Hungama.

Earlier, the advertising industry had raised concerns over the merger of Reliance Media assets and Star India, part of Walt Disney, that higher charges could be levied for advertisements during the telecast of major cricket events.

Among other conditions, the companies have voluntarily agreed that they will not bundle together the TV ad slot sales for all three cricketing rights available with them — IPL, ICC and BCCI — for the remaining tenure of the existing rights.

The merger was approved in August, three months after they filed for it, paving the way for the creation of the country’s largest media and entertainment firm. CCI had then said that the approval is subject to compliance with voluntary modifications to the merger scheme.

RIL will control the merged entity, with a 56% stake. Disney will own 37% of the combined firm, while Bodhi Tree Systems will have the remaining 7% stake.

Experts say that in a country with 1.4 billion people and 90% internet penetration, the deal could have “huge long-term implications”.

Source: The Economic Times

digital markets  India 

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