Reliance, Disney mull concessions for merger approval by CCI
20 Aug 2024
Reliance and Walt Disney have offered to sell some regional language channels to address anti-trust concerns raised by the Competition Commission of India (CCI) over the $8.5 billion (Rs71,350 crore) merger of their India media assets, reports citing sources close to the development said.
Reports said while the two media houses have offered to hive off some regional Indian language channels where the two companies may have a dominant market presence, both are unwilling to discuss the issue of cricket rights.
The companies have argued that the cricket rights will expire in 2027 and 2028 and can't be sold or sub-licensed as these will require prior approval from the Indian cricket board, which will be a difficult process, say reports.
While the CCI has so far not raised any concerns over the cricket rights, it is reported to be studying the market power of cricket.
With the merger of Reliance and Disney, the merged entity will own digital and TV cricket broadcasting rights for top cricket tournaments, including the Indian Premier League (IPL).
Reliance-Disney merger, announced in February, will create India's biggest entertainment broadcasting platform and will compete with Sony, Zee Entertainment, Netflix and Amazon.
With a combined 120 TV channels and two streaming services, the merged entity will own cricket broadcast rights worth billions of dollars, with increased pricing power over advertisers.
Cricket is the bone of contention as the sport has a greater power than any other entertainment in India and is sought after by advertisers.
It may be noted that CCI had, earlier, approved thev planned $10 billion (Rs83,943 crore) merger of Zee and Sony. The merger, however, collapsed.
