India’s biggest media empire under RIL’s fold

New Delhi: The Competition Commission of India (CCI) on Wednesday approved the merger of the media assets of Reliance Industries (RIL) and Walt Disney Co to create the country’s largest media empire worth over Rs70,000 crore. The deal, announced six months ago, faced scrutiny by the anti-trust regulator and the approval has come after the parties proposed certain modifications to the original transaction structure. In a post on X, the regulator said it has cleared the proposed combination involving Reliance Industries Ltd, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd and Star Television Productions Ltd, subject to the compliance of voluntary modifications”.

The Competition Commission of India (CCI), however, did not disclose voluntary modifications in the original deal made by the two parties. Under the deal, Mukesh Ambani-led Reliance Industries and its affiliates will hold 63.16 per cent of the combined entity that will house two streaming services and 120 television channels. Walt Disney will hold the remaining 36.84 per cent stake in the combined entity, which will also be India’s largest media house. Reliance Industries has also agreed to invest close to Rs11,500 crore into the joint venture to give it the muscle to fight rivals like Japan’s Sony and Netflix.

Nita Ambani, wife of billionaire and Reliance Chairman Mukesh Ambani, will head the joint venture, while Uday Shankar will be the vice chairperson. Shankar is a former top Disney executive and has a joint venture with James Murdoch called Bodhi Tree. CCI had raised various queries related to the deal, particularly with respect to the proposed combined entity’s cricket broadcasting rights and OTT presence amid anti-competitive concerns.

As per regulations, CCI has to pass a prima facie order within 30 calendar days of the merger being notified to the regulator. However, it has the power to conduct an in-depth inquiry to ascertain possible anti-competitive issues, and in that case, there will be a wider public consultation.