Reliance-Disney Merger Faces Antitrust Hurdles Over Cricket Rights
Reliance and Walt Disney propose selling some TV channels to gain quicker antitrust approval for their $8.5 billion India media assets merger. However, objections arise over the control of lucrative cricket broadcasting rights. Antitrust experts warn that the merger will create a dominant entertainment entity in India.
![Reliance-Disney Merger Faces Antitrust Hurdles Over Cricket Rights](https://devdiscourse.blob.core.windows.net/aiimagegallery/19_06_2024_05_01_26_9911012.png)
In a bid to expedite antitrust approval for their $8.5 billion merger, Reliance and Walt Disney have offered to sell certain TV channels, sources familiar with the matter reported. However, they are resisting changes to their lucrative cricket broadcast rights.
Antitrust experts warn that the merger, which will form India's largest entertainment group, poses potential market power and pricing concerns. The combined entity will include 120 TV channels and two streaming services and will be mainly owned by Mukesh Ambani's Reliance. The merger promises significant control over cricket broadcasting rights, raising fears of dominance in the advertising sector.
Reliance and Disney have responded to the Competition Commission of India's (CCI) inquiries by proposing to sell fewer than 10 TV channels. Despite these concessions, critical issues remain, such as the control over popular cricket leagues, including the Indian Premier League (IPL). The companies argue that these rights, expiring in 2027 and 2028, cannot currently be transferred or subdivided.
(With inputs from agencies.)
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- Reliance
- Disney
- merger
- antitrust
- cricket
- broadcasting rights
- CCI
- advertisers
- entertainment
- India
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