Reliance Industries, led by billionaire Mukesh Ambani, has applied for approval from the Competition Commission of India (CCI) for the proposed $8.5-billion merger between Viacom18 and Star India Pvt Ltd (SIPL).
The merger aims to integrate the entertainment businesses of Viacom18, a part of the RIL group, and SIPL, a wholly-owned subsidiary of The Walt Disney Company (TWDC). Under the agreement, SIPL will transition from being a wholly-owned entity of TWDC to a joint venture shared by RIL, Viacom18, and existing TWDC subsidiaries.
In its submission to the CCI, RIL stated that the transaction would not significantly impact competition in India. However, to facilitate the CCI’s assessment, RIL identified key markets with notable horizontal overlaps, including licensing of audiovisual content rights, distribution of broadcast TV channels, provision of audiovisual content, and supply of advertising space in India.
SIPL, currently owned by TWDC, engages in various media activities such as TV broadcasting, motion pictures, and operating an OTT platform. Similarly, Viacom18 is involved in broadcasting TV channels, operating an OTT platform, and production and distribution of motion pictures.
Earlier this year, Walt Disney Co and Reliance Industries announced binding pacts to merge their media operations in India, creating a Rs 70,000 crore ($8.5 billion) entity. Upon completion, the merger will form the largest firm in the Indian media and entertainment sector, boasting over 100 channels in multiple languages, two prominent OTT platforms, and a viewer base of 750 million across the country.
Nita Ambani, wife of Mukesh Ambani, will chair the joint venture, with Uday Shankar serving as the Vice Chairperson. Reliance and its affiliates will hold a 63.16% stake in the combined entity, while Disney will retain a 36.84% shareholding. Additionally, Reliance has committed to invest approximately Rs 11,500 crore into the joint venture to foster the growth of the OTT business.
(With inputs from PTI)
