Walt Disney and Reliance have received approval for their ambitious, gargantuan $8.5 billion merger of their Indian media assets. The Competition Commission of India (CCI) today cleared the deal, which now creates "India's largest entertainment entity".
As per media watchers, the much-advertized merger is a potential threat to Sony, Netflix, and Amazon. "Excessive control" over cricket broadcasting rights was feared by the CCI.
What happens to the cricket broadcasting rights? Are the concerns gone once and for all? As per a national media report, the two entities that have merged have "proposed concessions, including pledges not to unreasonably increase advertising rates for streamed cricket matches", which the CCI found acceptable.
"The Commission approves the proposed combination involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited and Star Television Productions Limited, subject to the compliance of voluntary modifications," the CCI wrote on social media.
Reliance is the superior player in the Joint Venture. "Under the deal, Reliance and its affiliates will hold a 63.16 per cent stake in the combined entity that will house two streaming services and 120 television channels," the DNA reported.
