Disney and Reliance have made some concessions to secure India antitrust approval for their $8.5 billion media merger, but they are unwilling to sell any cricket broadcast rights, which are the most valuable part of the deal, according to two sources familiar with the matter.
Reuters reported earlier this week that the Competition Commission of India (CCI) sent a warning notice to the companies, expressing concerns that their merged entity would dominate most cricket rights for TV and streaming in India, potentially harming advertisers. In response, the companies have agreed to moderate advertising rate hikes and not increase them unreasonably, the sources said.
Reliance-Disney aims to create India's largest entertainment entity, competing with Sony, Netflix, and Amazon with 120 TV channels and two streaming services. Cricket, which enjoys a fanatic following in the country, is considered the most prized asset. Antitrust experts had suggested that selling some cricket rights could help clear the antitrust hurdle, but Disney and Reliance have submitted privately to the CCI that they are unwilling to do so, according to the two sources, who requested anonymity due to the confidential nature of the process. This submission is being reported for the first time. Reliance, Disney, and the CCI did not immediately respond to queries from Reuters.
