India approves $8.5bn Reliance-Disney entertainment merger
India’s competition watchdog has provisionally approved an $8.5 billion (£6.43 billion) merger between Disney and Reliance Industries, paving the way for the creation of India’s largest entertainment conglomerate. The venture, which will be majority-owned by billionaire Mukesh Ambani’s Reliance Industries, is set to challenge industry giants like Sony, Netflix, and Amazon in the Indian market.
The joint venture will secure broadcasting rights for a significant portion of India’s sports events, including the highly sought-after cricket tournaments. The merger, expected to be finalized within the next six months, will be chaired by Nita Ambani, Mukesh Ambani’s wife.
India’s competition watchdog, while giving its provisional approval, noted that the deal is contingent on “voluntary modifications” to address concerns it had previously raised. Specifically, the watchdog was wary of the control the merger would grant over cricket broadcasting rights, a sport with an immense following in India.
Both Disney and Reliance have been successful in drawing Indian subscribers to their streaming services by offering free live streams of cricket matches. According to reports, the two companies have collectively spent $9.5 billion on TV and streaming rights for major cricket events, including the Indian Premier League (IPL), T20 World Cups, and matches organized by the International Cricket Council.
There were concerns that the new entity could drive up advertising prices for these cricket broadcasts. However, the companies have reportedly committed to not excessively raising advertising rates for cricket streams and have agreed to sell seven to eight of their non-sports TV channels to balance revenues.
In addition to cricket, the merger will grant the companies Indian broadcast rights for other major sports events, including Wimbledon, MotoGP, and the English Premier League (EPL). Gurmeet Chadha, managing partner of financial consultancy Complete Circle, remarked that the deal “creates a huge digital entertainment giant,” highlighting the companies’ strong content portfolio, technological capabilities, and extensive distribution networks. In a nation of 1.4 billion people with 90% internet penetration, Chadha emphasized that this merger could have significant long-term implications for the entertainment landscape in India.
