The merger between Relience’s Viacom18 and Star India and Disney’s venture Hotstar is pacing up. The merger is one of the most hyped ones in Indian entertainment space and as per the recent updates, the finishing line is nearer than we anticipate.
The merger will be done by October, when the Competition Commission of India (CCI) is also expected to issue its order.
The merger between Star and Viacom18, announced on February 28, is awaiting final approval from the National Company Law Tribunal (NCLT) after receiving the go-ahead from creditors and shareholders.
The main hurdle is obtaining approval from the Competition Commission of India (CCI). An official following the situation expects the CCI’s decision by October, which would significantly advance the merger process.
The Competition Commission of India (CCI) is investigating the potential impact of the Star-Viacom18 merger on the competitive landscape by consulting with other broadcasters, streaming platforms, TV distributors, and advertisers.
A top executive from a rival media firm, speaking anonymously, noted that this is a standard procedure for the CCI, similar to the approach taken in the Sony-Zee merger case, where feedback from industry players is sought to assess the merger’s effects.
Star and Viacom18 have submitted their arguments to the CCI, claiming the merger will not harm the media and entertainment industry due to existing market competition. Media analysts believe that companies like Sony, Zee, Sun, Netflix, Prime Video, and YouTube will continue to provide significant competition to the merged entity in both linear TV and streaming sectors.
The merger would result in a formidable presence, with over 100 TV channels in entertainment and sports and two major streaming platforms, Disney+ Hotstar and JioCinema.
In FY23, Star and Viacom18’s combined revenue reached approximately Rs 25,000 crore, compared to the Rs 11,000 crore combined revenue of their closest competitors, Zee (TV) and Netflix (streaming). The merger would also make Star-Viacom18 a leader in sports, holding rights to the Indian Premier League, India international cricket, and more.