NEW DELHI: The Competition Commission of India (CCI) is said to have raised preliminary concerns that the $8.5 billion merger of Reliance and Walt Disney media assets might harm competition due to their power over cricket broadcast rights.
As per a report, the CCI has privately told billionaire Mukesh Ambani’s Reliance and Disney its view and asked the companies to explain why an investigation shouldn’t be ordered.
The report stated that rights worth billions of dollars for the broadcast of cricket would be vested with the merged entity, which could potentially peril fair pricing power and control over advertisers.
The CCI earlier privately asked Reliance and Disney about 100 questions related to the merger. The companies reportedly told the antitrust body they are willing to sell about 10 television channels to assuage concerns about market power to get an early approval.
CCI is reported to have given a 30-day timeframe to the two companies to respond and explain their position.
Reliance Industries Limited (RIL) and US-based entertainment giant Walt Disney in February had announced forming a joint venture (JV) that will combine the businesses of Viacom18 and Star India to create an $8.5 billion media behemoth whose reach in the broadcasting as well as streaming platform will be among the largest in the country.
The transaction, which will create an entity merged with 120 TV channels and two streaming platforms, is expected to be completed in the last quarter of CY24 or the first quarter of CY25. Antitrust experts had earlier warned that the merger process would attract intense scrutiny due to its expected size and reach in the industry.
Billion dollar rights
Report stated that the rights worth billions of dollars for the broadcast of cricket would be vested with the merged entity
May impact fair pricing power
Exclusive cricket broadcasting rights could peril fair pricing power and control over advertisers. CCI earlier privately asked Reliance and Disney about 100 questions related to the merger