New Delhi18 hours ago
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Disney-Reliance have announced some concessions in an attempt to get approval from the Competition Commission of India (CCI) for their Rs 71,250 crore media merger deal. However, these companies are not ready to sell cricket broadcasting rights, which are considered to be the most important part of this deal.
CCI had expressed concern this week that the new company formed after the merger of the two companies could control most of the cricket rights for TV and streaming in India, which could harm advertisers. In response, the companies proposed not to increase advertising rates unreasonably. However, the companies have not promised to keep advertising rates stable for any specific period.
Companies believe that they have spent about 80 thousand crores rupees on cricket rights, so they do not want to leave them. CCI will now review these new proposals and see whether these concessions are enough to reduce the concerns related to competition or whether more in-depth investigation is needed.
The CCI has already asked Reliance and Disney about 100 questions related to the merger. The companies have already told the CCI that they are willing to sell about 10 TV channels to mitigate concerns related to market power and get quick approval.
120 channels after merger, 40% share in advertising market
In the last few years, both companies have attracted users by showing cricket matches for free on some of their streaming platforms. Reliance-Disney’s goal is to become India’s largest entertainment player, which will compete with companies like Sony, Netflix and Amazon.
The new entity formed by their merger will include 120 TV channels and two streaming services. Brokerage firm Jefferies says that the joint venture of Disney and Reliance will have a 40% share in the advertising market of the TV and streaming segment.
Reliance is India’s largest private sector company
Reliance is India’s largest private sector company with a market cap of Rs 20,29710.68 crore. Reliance currently operates in hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewable energy (solar and hydrogen), digital services and retail sectors.
