Tag: Indian Media Industry

Highlights CCI approves the $8.5 billion merger between Reliance Industries and Walt Disney’s media assets. The merger will create India’s biggest media company. The company will be valued at over ₹70,000 crore. Reliance will control 60% and Disney 37% of the merged company. CCI approved the $8.5-billion Reliance-Disney merger deal in a detailed order. (Image credit - Shutterstock) The Competition Commission of India (CCI) recently published a published 48-page detailed order to green-lit the big merger between Reliance Industries and Walt Disney’s media assets. However, not without a few conditions. As part of the $8.5 billion deal, Reliance and Disney will have to sell off seven TV channels including Hungama and Super Hungama to meet competition rules. Reliance and Disney have also agreed not to bundle TV ad slots for IPL, ICC and BCCI cricket matches until the end of their current contracts to get the merger approved. This means that advertising slots for these popular cricket events will be sold separately ensuring fair competition. "The parties will not bundle OTT ad slot sales for all three cricketing rights available with the parties, i.e. IPL, ICC and BCCI for the balance tenure of the existing rights," said the 48-page order. The companies also promised not to raise ad prices for ICC and IPL events "to an unreasonable level" while they hold the rights. A key part of the deal is the sale of seven TV channels Hungama and Super Hungama. Reliance-Disney Merger Gets IB Minitry's Approval Earlier in September 2024, the Ministry of Information and Broadcasting (I&B) gave its approval for the transfer of non-news TV channels from Viacom18 Media to Star India. Reliance shared the news in a filing to the stock exchange, saying, "It is hereby informed that the Ministry of Information and Broadcasting (I&B), Government of India, vide its order dated September 27, 2024, has granted its approval for the transfer of Licenses relating to Non News & Current Affairs TV channels held by Viacom18 Media in favour of Star India subject to conditions laid by Competition Commission of India." According to CCI, this merger will create India’s biggest media company valued at over ₹70,000 crore. Mukesh Ambani’s Reliance will control 60% of the new entity, 16% directly and 47% through its Viacom18 business. On the other hand, Disney will own 37%. The combined company will run more than 120 TV channels and two major streaming services giving Reliance a huge presence in India’s media scene. For the July-September quarter, Reliance Industries reported a profit of ₹19,101 crore. This was a 3.6% drop compared to last year. But on a quarter-on-quarter basis, the company’s profit actually increased by 9.5%. In the first quarter of FY25, they made a profit of ₹17,448 crore. FAQs Q1. What conditions did the CCI place on the Reliance-Disney merger? Answer. As part of the $8.5 billion deal, Reliance and Disney will have to sell off seven TV channels including Hungama and Super Hungama to meet competition rules. Q2. What have Reliance and Disney agreed to regarding TV ad slots? Answer. Reliance and Disney have agreed not to bundle TV ad slots for IPL, ICC, and BCCI cricket matches until the end of their current contracts to get the merger approved. Q3. How much of the new entity will Reliance and Disney control? Answer. Mukesh Ambani’s Reliance will control 60% of the new entity and Disney will own 37%. Also Read : Tira by Reliance Launches Global Luxury Skincare Brand Augustinus Bader in India Also Read : Mukesh Ambani's Reliance Pushes for Auction of Satellite Spectrum Amid Competition with Elon Musk's Starlink

Tag: Indian Media Industry

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