Reliance Industries has approached the Competition Commission of India (CCI) and sought approval for the merger between its subsidiary with a unit of the Walt Disney Company. The conglomerate, owned by billionaire Mukesh Ambani, has asked for the fair trade regulator to sign off on the merger of its subsidiary, Viacom18 and Disney’s wholly-owned subsidiary, Star India Pvt Ltd (SIPL).
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The merger, worth $8.5 billion, plans to create a joint venture which will be collectively owned by Reliance, Viacom18, and the existing Walt Disney subsidiaries, a notice filed by the firm with the regulator revealed on Friday, reported PTI.
The conglomerate said that the proposed merger would not create any adverse effect on competition in India. However, the firm pointed out in its notice the multiple key markets where horizontal overlaps could be significant. These include distribution of broadcast TV channels, licensing of audio visual content rights, provision of audio visual (AV) content, and the supply of advertising space in the country.
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Notably, SIPL, a wholly-owned subsidiary of the US-based Walt Disney Co, is involved in TV broadcasting, an OTT platform, motion pictures, and such things. Meanwhile, Viacom18 is engaged in broadcasting television (TV) channels, producing and distributing motion pictures, and operating OTT platform in India and internationally.
Earlier this year in February, both Walt Disney and Reliance, revealed that they are entering an agreement to merge their media operations in India to create a new entity worth $8.5 billion. This deal will create the biggest player in the Indian media and entertainment sector, with more than 100 channels in multiple languages, two leading OTT platforms, and access to a viewership of 750 million Indians.
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The new entity will see Nita Ambani serve as the chair, while Uday Shankar will act as the Vice Chairperson of the joint venture. Reliance will control a majority 63.16 per cent stake in the JV along with its affiliates, while Disney will account for the remaining 36.84 per cent of the entity.
