Mukesh Ambani's Reliance, Walt Disney to divest 7 channels in major Rs 70000 crore merger

The merger between Reliance Industries and Walt Disney is set to create a massive media company worth over Rs 70,000 crore, but there are certain conditions to ensure fair competition in the market. The Competition Commission of India (CCI) recently released a detailed 48-page order outlining measures to address concerns about anti-competitive practices following the merger. One of the major steps includes the divestment of seven TV channels and measures to prevent unfair practices in the sale of advertisement slots during major cricketing events.

The merged entity will control several valuable sports broadcasting rights, including the Indian Premier League (IPL), ICC cricket tournaments, Wimbledon, Pro Kabaddi League, and BCCI domestic matches. There were concerns raised by the advertising industry about the possibility of higher ad rates for major cricket events after the merger. To address this, Reliance and Disney have agreed not to increase advertising rates to unreasonable levels on their TV and streaming platforms for ICC and IPL events. Additionally, they will not bundle the sale of TV and online advertisement slots together for these cricket broadcasts.

Both companies have also assured that Disney+Hotstar (Star India’s OTT platform) and JioCinema (Viacom18’s OTT platform) will continue to operate independently, without merging their advertising sales for IPL or other cricketing events.

As part of the CCI’s conditions, Reliance and Disney will sell seven TV channels. These include Star Jalsha Movies, Star Jalsha Movies HD, Colors Marathi, Colors Marathi HD, Colors Super (Kannada entertainment), and the kids' channels Hungama and Super Hungama. The sale will include licenses for the channel names, trademarks, and logos for an agreed period. The companies will not be allowed to reacquire these channels or hold any influence over them for at least five years after the sale.

Moreover, the CCI specified that these channels cannot be purchased by major competitors like Zee Entertainment, Sony Pictures (Culver Max Entertainment), or Sun TV Network. An independent agency will oversee the divestment process to ensure compliance.

The merger, which was first announced earlier in 2024, received CCI approval on August 28 after several modifications were made to address competition concerns.

 

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