Reliance, Walt Disney Mega-Deal Merger Cleared by Anti-Trust Body

Reliance Industries has agreed to invest approximately Rs 11,500 crore into a joint venture with Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited, and Star Television Productions Limited. After six months of announcement, the deal finally received approval from the anti-trust regulator.

The approval came after the parties proposed certain modifications to the original transaction structure. Walt Disney will hold the remaining 36.84 per cent stake in this combined entity, making it India’s largest media house.

Nita Ambani, the wife of Reliance chairman Mukesh Ambani, will lead the joint venture, with Uday Shankar as the vice chairperson. Shankar, a former top Disney executive, has a joint venture with James Murdoch called Bodhi Tree.

The deal faced scrutiny from the Competition Commission of India (CCI), particularly related to the proposed combined entity’s cricket broadcasting rights and OTT presence amid anti-competitive concerns. Merger activities in the media and entertainment space are gaining pace, reflecting a consolidation trend to stay financially healthy.

In a related development, the much-hyped merger between Sony and Zee failed due to multiple issues. However, the two companies announced an amicable settlement of their dispute.

Reliance’s media ventures are currently housed in Network 18, which owns TV18 news channels, entertainment and sports channels, and has stakes in moneycontrol.com, bookmyshow, and publishes magazines. Reliance also owns JioStudios, a movie production arm, and majority stakes in cable distribution companies Den and Hathway.

Disney+ Hotstar, launched in India in 2020, is a result of Disney’s acquisition of the entertainment assets of 21st Century Fox. Disney now has operations over Star India and Hotstar, which include entertainment and cinema channels like StarPlus and StarGold, as well as sports channels such as Star Sports.