CCI approves deal between Reliance and Disney India, deal done for Rs 70,350 crore

India's competition regulator (CCI) has approved the Rs 70,350 crore merger of Disney's Indian media assets on behalf of Reliance Industries Limited with certain voluntary amendments. The Competition Commission of India (CCI) said in a post on the X platform, "The Commission has approved the proposed combination of Reliance Industries Limited, Viacom 18 Media Private Limited, Digital 18 Media Limited, Star India Private Limited and Star Television Productions Limited, subject to compliance with the voluntary amendments." Disney-Star has exclusive digital and TV rights for ICC events from 2024 to 2027 and IPL broadcast rights from 2023 to 2028, while Jio has acquired IPL streaming rights. The CCI's decision comes on the eve of Reliance Industries' 47th annual general meeting on August 29.

In February, the Viacom18 unit of Reliance Industries and Disney's Star India tied a deal to integrate their media businesses into the country's largest TV and digital streaming company. The deal would see Viacom18 merge its media operations with Star India Private Ltd through a court-approved scheme of arrangement. RIL would be investing Rs 11,500 crore ($1.4 billion) in the joint-venture post-money company valued at Rs 70,350 crore ($8.5 billion).

Together, Reliance-Disney will challenge Sony, Netflix, and Amazon with 120 TV channels besides two streaming services. The new board will have ten members out of which five will be from RIL, three from Disney, and two Independent Directors. The merger process is expected to be completed in the last quarter of 2024 or the first quarter of 2025.

Ms Nita Ambani will be the Chairperson of the merged company, while Mr Uday Shankar, formerly President of The Walt Disney Company Asia Pacific, will join the Board as a Vice Chairman, the statement said. Under the share-ownership structure of the merger, RIL has 16.34 percent, Viacom18 holds 46.82 percent and Disney is at 36.84 percent. RIL will retain control under the terms of the deal. Reliance shares barely moved on the NSE and closed at Rs 2,999 on August 28. The announcement by CCI came after the market closed in Mumbai.