Walt Disney Co and Reliance Industries have received the green light for their $8.5 billion merger of Indian media assets, subject to certain adjustments, according to India's antitrust regulator on Wednesday. The deal, which raised concerns about the control of cricket broadcasting, aims to establish Reliance-Disney as India's premier entertainment entity, rivaling Sony, Netflix, and Amazon with a portfolio of 120 TV channels and two streaming platforms.
The Competition Commission of India (CCI) had previously issued a cautionary notice to the companies, expressing worries that the combined entity would dominate the majority of cricket rights for both television and streaming in India, potentially disadvantaging advertisers. In response, the companies have made concessions to the CCI, including a pledge not to increase advertising rates excessively for cricket matches streamed online, as confirmed by a source familiar with the situation.
The CCI has approved the merger in a brief statement, without elaborating further. The new entity will be predominantly controlled by Reliance, led by Asia's wealthiest individual, Mukesh Ambani. The CCI had posed approximately 100 queries to Reliance and Disney regarding the merger in private.
