CCI Approves Reliance-Disney Merger With Conditions On IPL, ICC & BCCI Cricket Ad Slots

The Competition Commission of India (CCI) has granted conditional approval for the merger between Reliance Industries and Walt Disney, subject to various stipulations. The 48-page order released on 22 October  2024, permits the merger with conditions including the sale of seven television networks such as Hungama and Super Hungama as part of the agreement, as per reports.

Additionally, as part of the regulatory licensing process, the involved parties have voluntarily agreed not to bundle TV commercial slots for IPL, ICC and BCCI cricket rights until the current rights expire.

"The parties will not bundle together the TV ad slot sales for all three cricketing rights available with the parties i.e. IPL, ICC and BCCI for the balance tenure of the existing rights. The parties will not bundle together OTT ad slot sales for all three cricketing rights available with the parties i.e. IPL, ICC and BCCI for the balance tenure of the existing rights," the 48-page order said.

The parties will also need to divest seven television stations including Hungama and Super Hungama.

On 28 August, the CCI approved the merger of Mukesh Ambani-led Reliance Industries with Walt Disney's media assets, creating the country’s largest media empire valued at over Rs 70,000 crore. However, the deal faced scrutiny from the antitrust regulator and this approval follows proposed modifications to the original transaction structure.

Last month, the Ministry of Information and Broadcasting also approved the transfer of TV channel licenses specifically for non-news and current affairs channels. As part of this transition, channels held by Viacom18 Media will be transferred to Star India.

In February, Reliance Industries and Walt Disney Co signed a binding agreement to merge their media operations in India, reshaping the country's media landscape and establishing a combined entity with a significant share of cricket and entertainment broadcasting rights.

The merged entity will encompass two streaming services and 120 television channels. Reliance owns Viacom18 Media and Digital18 while Disney controls Star India and Star Television.

Reliance Industries will hold 60 per cent of the shares, 16 per cent directly and 47 per cent through its majority-owned Viacom18 Media while Disney will own the remaining 37 per cent.