TV18 Broadcast share price soars 6% after CCI nod for $8.5 Bn merger with Disney’s Indian media assets

Shares of TV18 Broadcast surged 6% to Rs 50.75 on the NSE on Thursday after the company received approval from the Competition Commission of India (CCI) for its $8.5 billion mega merger with Disney’s entertainment and media assets in India.

The proposed transaction involves merging Viacom18 Media, a joint venture between TV18 and ViacomCBS, with the local operations of Disney’s entertainment and sports channels. Once completed, the combined entity will create one of the largest entertainment networks in India.Key highlights of the deal:

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  • Viacom18 will acquire Disney’s entertainment channels like Star, Disney, Hungama, and Marvel, along with its sports network Star Sports.
  • TV18 will hold a 51% stake in the merged entity, while Viacom18’s current shareholders, including Reliance Industries, will own the remaining 49%.
  • The merged company will have a strong bouquet of popular channels across news, entertainment, and sports genres, as well as a growing digital platform Voot.
  • The deal is expected to create significant synergies and cost efficiencies for the combined entity, making it better positioned to compete with global streaming giants like Netflix and Amazon Prime Video in the rapidly evolving Indian media landscape.

Analysts believe the CCI nod is a major milestone for the deal and paves the way for its swift completion. They remain positive on the long-term prospects of the merged entity, given its enhanced scale, content library, and digital capabilities.

However, some concerns persist regarding the integration challenges and regulatory hurdles that may arise during the implementation phase. The deal is also subject to other customary closing conditions and approvals.

Overall, the CCI approval has boosted investor confidence in TV18 Broadcast, as reflected in the sharp uptick in its stock price on Thursday. The company’s shareholders are likely to benefit from the value creation potential of the mega merger in the coming years.

Stock data as on 9:23AM, today