India approves Disney-Reliance merger to form media giant

India's Competition Commission has provisionally approved a significant merger between Reliance Industries Limited and key entertainment assets of The Walt Disney Company in India, valued at approximately $6.43 billion. This merger, announced in February, will integrate Viacom18's assets from Reliance with Star India Private Limited, a Disney subsidiary, creating a formidable new media entity in the Indian market. The commission has raised concerns regarding the potential dominance of the merged entity in cricket broadcasting, a critical area given the popularity of the sport in India. The merger will result in a joint venture that combines the strengths of RIL, Viacom18, and Disney subsidiaries, positioning the new entity to compete effectively against major players like Sony, Netflix, and Amazon. The combined portfolio will include 120 TV channels and two streaming services, significantly enhancing its market presence. The deal is expected to be finalized within six months, pending approval from the National Company Law Tribunal and shareholder votes. K K Sharma, a former head of mergers at the CCI, has indicated that this merger could lead to a monopoly in cricket advertisement revenues, given the companies' existing dominance in broadcasting rights. The merger is anticipated to reshape the Indian media landscape, particularly in the realm of sports broadcasting, which has been a key driver of subscriber growth for both companies. Bob Iger, Disney's CEO, expressed enthusiasm for the opportunities this joint venture presents in India's populous market, while Mukesh Ambani highlighted the merger as a transformative moment for the Indian entertainment industry, promising to deliver high-quality content at affordable prices to audiences across the nation.