RIL, Disney Propose Ad Rate Freeze To Gain CCI Nod For Merger: Report
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Reliance Industries (RIL) and Walt Disney are reportedly proposing a two-year freeze on advertising rate cards to secure approval from the Competition Commission of India (CCI) for their merger of Star India and Viacom18. The companies are considering committing to keep current ad rates unchanged for all advertisers and agencies during this period as part of their offer to the anti-trust regulator, as per media reports.
RIL and Disney are optimistic about securing approval from the Competition Commission of India (CCI) for their merger, believing that a freeze on ad rate cards could address the CCI’s concerns about the merger's competitive impact.
As they aim to finalise the merger by October, RIL and Disney are exploring several measures to mitigate the regulator’s concerns about its potential effects on the Indian media and entertainment (M&E) industry.
In addition to proposing the rate freeze, RIL and Disney are considering shutting down some of their less successful channels in Hindi and regional markets. The move aims to address concerns that the merged entity could exceed the 40 per cent market share threshold in several markets.
The CCI is reviewing the Rs 70,000 crore merger proposal between Viacom18 and Star India with particular focus on potential antitrust issues and the dominant market shares of the two companies in TV and streaming segments.