With Reliance poised to hold a 56% stake and Disney 37%, the newly formed entity will be under intense scrutiny until a final decision is made
Will the two media giants freeze their advertising rates for the next two years? The suspense lingers as the Competition Commission of India (CCI) deliberates over the proposed merger between Reliance Industries' Viacom18 and Walt Disney's Star India. This merger, valued at a staggering Rs 71346 crore, promises to create the largest media and entertainment company in India. However, concerns from the CCI have stalled the process, prompting a surprising offer from the conglomerates.
In a bid to address antitrust concerns and secure approval, sources reveal that Reliance and Disney have internally discussed maintaining current advertising rates for two years. This unprecedented proposal is seen as a strategic move to alleviate fears of market dominance and unfair pricing power. If approved, this freeze could stabilise advertising revenues while satisfying the CCI’s conditions for a fair competition landscape.
But the stakes are high. The CCI is scrutinising whether the merged entity could monopolise key segments, especially cricket broadcasting, which commands the highest ad revenues in the country. The fear of a monopoly looms large, with the commission investigating whether this merger could give Star-Viacom18 unparalleled control over the cricket broadcast market.
Adding to the drama, the companies are also considering shutting down some channels to avoid exceeding market share limits, another point of contention raised by the CCI. With Reliance poised to hold a 56% stake and Disney 37%, the newly formed entity will be under intense scrutiny until a final decision is made.
As the October deadline approaches, all eyes are on the CCI. Will they accept the proposal and greenlight the merger, or will this freeze thaw the ambitions of the two media giants? Only time will tell, but one thing is certain—this is a merger that could reshape the future of India's media landscape.
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 "Mukesh Ambani, chairman of Reliance Industries")
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