Indian Antitrust Body Challenges Disney-Reliance $8.5B Merger Over Cricket Rights

The Indian antitrust body is challenging an $8.5 billion merger between Walt Disney and Reliance, centered around cricket broadcast rights. Concerns of a monopoly have led to discussions of selling some rights or capping ad prices. The merger aims to form India's largest entertainment platform, competing with global giants.

The Indian antitrust body's opposition to an $8.5 billion merger between Walt Disney and Reliance over cricket broadcast rights could compel the companies to sell some of these valuable assets or cap advertising prices, sources informed Reuters.

The Competition Commission of India (CCI) sent a warning notice, expressing concerns over a potential monopoly in the cricket broadcast market. While both companies aim to create India's biggest entertainment player, a monopoly could allow the merged entity to leverage lucrative advertising deals. None of the parties involved have commented publicly, citing confidentiality in the ongoing process.

Legal experts suggest that to address antitrust concerns, the companies might have to sell broadcast rights for specific cricket tournaments or commit to reasonable advertisement rates. Cricket is pivotal to the merger, with Reliance and Disney spending around $9.5 billion on cricket broadcast rights. Should the CCI demand, further scrutiny could extend the approval process for months.

(With inputs from agencies.)