CCI Approves Rs 70,000 Crore Reliance-Disney Merger, Paving Way For Creation Of India's Largest Media Firm

The Competition Commission of India (CCI) on Wednesday (28 August) gave its approval for the merger of Reliance and Disney's entertainment businesses, a deal valued at over Rs 70,000 crore or $8.5 billion.

The approval follows earlier concerns raised by the CCI that the new merged entity would control most of the rights for broadcasting cricket and TV in India, hurting advertisers.

The merger involves Reliance Industries Limited (RIL), Viacom18 Media Private Limited (Viacom18), and Digital18 Media Limited, merging with The Walt Disney Company's (TWDC) Star India Private Limited (SIPL) and Star Television Productions Limited (STPL).

The merger will result in the creation of India's largest entertainment company, boasting 120 TV channels and two streaming services.

Following the merger, Reliance will hold a 63.16 per cent stake in the combined entity, while Walt Disney will retain the remaining 36.84 per cent stake.

According to the CCI's press statement, Star India Private Limited, currently wholly owned by Disney, will transform into a joint venture held by Reliance Industries Limited, Viacom18, and Disney's existing subsidiaries.

However, the CCI's approval is conditional upon the compliance of "voluntary modifications," with the detailed order still pending release.

Also Read: UPSC To Use Aadhaar-Based Authentication For Candidate Verification After Centre's Nod—All You Need To Know