Antitrust Hurdles Threaten $8.5 Billion Disney-Reliance Merger Over Cricket Rights

The $8.5 billion merger between Disney and Reliance's India media assets faces significant challenges after the country's antitrust body raised concerns about reduced competition, particularly in cricket broadcasting rights. The merger involves major television networks and streaming platforms like Disney Star, Viacom18, Hotstar, and JioCinema.

The $8.5 billion merger between Disney and Reliance's Indian media assets is facing a significant setback. The country's antitrust body has raised initial concerns about the deal's potential to harm competition due to the companies' dominant control over cricket broadcasting rights. Four sources confirmed this development to Reuters on Tuesday.

The merger would combine extensive media holdings, including Reliance's Viacom18, which operates 40 television channels, and Disney Star, which runs around 80 channels. Among their assets are the coveted TV rights for both domestic and international cricket. Viacom18 holds rights for Board of Control for Cricket in India matches, while Disney controls the Indian Premier League (IPL) TV rights until 2027.

In the digital realm, Disney's Hotstar and Reliance's JioCinema are significant players. Disney's digital rights extend to International Cricket Council matches in India until 2027, and JioCinema holds IPL streaming rights following a successful bid against Disney. The combined content library of over 200,000 hours would include TV dramas, films, and sports events, potentially impacting market competition.

(With inputs from agencies.)