Reliance Disney Merger: The Competition Commission of India (CCI) on Wednesday granted approval for the Rs 70,350 crore ($8.5 billion) merger between Reliance Industries Ltd (RIL) and Disney’s Indian media assets. The approval, however, comes with certain voluntary modifications that the companies must adhere to.
The proposed merger involves several entities including Reliance Industries Ltd, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd, and Star Television Productions Ltd. The CCI announced the approval via a post on X (formerly Twitter), stating, “Commission approves 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.”
CCI Approves Rs 70,350 Crore Merger Between Reliance Industries and Disney’s Indian Media Assets
Once the merger is finalized, Reliance and its affiliates will hold a controlling 63.16% stake in the newly formed entity, while Walt Disney will retain a 36.84% stake. The combined entity will oversee two major streaming platforms and a total of 120 television channels.
Disney+ Hotstar, owned by Walt Disney’s Star India, currently dominates the Indian streaming market with over 500 million downloads on the Google Play Store. JioCinema, owned by Viacom18 (controlled by RIL), has garnered over 100 million downloads. Despite the disparity in their reach, RIL aims to create a more robust streaming service by merging the platforms, enabling it to compete more effectively against global giants like YouTube, Netflix, and Amazon Prime Video.
The CCI’s approval comes just a day before RIL’s 47th Annual General Meeting (AGM)
In a similar strategic move, RIL previously merged Voot into JioCinema, further consolidating its media assets. Recently, JioCinema was transferred to Viacom18 following a court-approved deal, which also saw RIL and Bodhi Tree Systems investing Rs 15,145 crore into Viacom18.
The CCI’s approval comes just a day before RIL’s 47th Annual General Meeting (AGM), adding to the anticipation surrounding the company’s future plans. Earlier today, RIL shares closed 0.16% lower at Rs 2,995.75 in the stock market, shortly before the post-market announcement of the merger approval.
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