Walt Disney Co and Reliance Industries Secure Approval for $8.5 Billion Merger

Walt Disney Co and Reliance Industries have received approval for an $8.5 billion merger of their Indian media assets, after addressing regulatory concerns about their control over cricket broadcasting rights. The merger, creating India's largest entertainment entity, aims to compete with industry giants and is expected to finalize within six months.

Walt Disney Co and Reliance Industries have cleared a significant regulatory hurdle, attaining approval for their $8.5 billion merger of Indian media assets. This move comes after addressing concerns over their dominance in broadcasting rights for cricket, a highly popular sport in India.

The Competition Commission of India (CCI) has given the green light subject to modifications proposed by the companies. These modifications include not raising advertising rates unreasonably for cricket matches and selling 7-8 non-sports TV channels. The merger aims to create India's largest entertainment entity, rivaling Sony, Netflix, and Amazon with 120 TV channels and two streaming services.

This merger grants Reliance owner Mukesh Ambani a firmer grip on the $28 billion media and entertainment sector. The regulatory approval arrives just before Ambani's scheduled address at the Reliance Annual General Meeting. This new entity will control major cricket and other sports broadcasting rights, potentially influencing the advertising market.

(With inputs from agencies.)