There is something strange about mergers in India. Somehow, they are extremely difficult to carry on. We must say that Prime Video and MX Player were extremely lucky.
Regardless, there is news on the much-anticipated merger between Walt Disney and Reliance Industries.
Reliance Industries and Walt Disney have proposed selling a few TV channels to speed up antitrust approval for their $8.5 billion merger in India’s media market.
The merger has drawn attention because of the huge market power it could give the combined entity. The new company, which will be largely owned by Mukesh Ambani’s Reliance, is expected to control 120 TV channels and two streaming platforms.
It will also hold cricket broadcasting rights. And it is almost the guiding force of the Indian OTT market. This comes with a risk of monopoly in the market. Needless to say, it is almost a certainty that this combined giant will hardly let any other network grow its wings.
To address these concerns, the Competition Commission of India (CCI) has been closely examining the deal. The CCI has asked Reliance and Disney around 100 questions regarding the merger. In response, the companies have agreed to sell fewer than 10 TV channels, mainly in regional Indian languages where they might have a dominant presence. If not monopoly, it frees them from hassle free documentation.
The merged entity will control the rights to both digital and TV broadcasts for major cricket leagues, including the IPL. Experts warn that this could give the new company complete control over cricket content in India.
However, Reliance and Disney have argued that these rights, which expire in 2027 and 2028, cannot be sold or transferred at this time. They also said that any changes to these rights would require approval from the Indian Cricket Board, which could delay the merger process.
Let’s see how long it takes.