In a significant boost to the Indian media landscape, the Competition Commission of India (CCI) has approved the proposed merger involving Reliance Industries, Viacom18 Media, Digital18 Media, Star India, and Star Television Productions.
The green light from the CCI comes with a caveat: the companies must comply with certain voluntary modifications to address potential competition concerns. While the exact details of these modifications remain undisclosed, the CCI has likely sought to ensure a level playing field in the Indian media market.
The merger between the two media powerhouses was pending clearance from the anti-trust regulator to ensure that a proposed merger or acquisition does not create an unfair monopoly or reduce competition in the market.
CCI raised preliminary concerns that the $8.5 billion merger between Reliance's and Walt Disney's media assets could harm competition, especially due to their combined control over cricket broadcasting rights.
On February 28, 2024, Star India entered into a binding definitive agreement with RIL and Viacom 18 Media Private Limited, which is majority-owned and controlled by RIL, to form a joint venture that will combine the businesses of Viacom18 and Star India consisting of entertainment and sports pay TV and free-to-air networks, DTC services, library content and certain production businesses (the Star India Transaction).
The transaction values the JV at ₹70,352 crore (US$ 8.5 billion) on a post-money basis, excluding synergies. Post completion of the above steps, the JV will be controlled by RIL and owned 16.34 per cent by RIL, 46.82 per cent by Viacom18 and 36.84 per cent by Disney. Disney may also contribute certain additional media assets to the JV, subject to regulatory and third-party approvals.
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