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Mukesh Ambani's Reliance Group's deal to buy Disney's Star India operations has almost reached its final stages. The company's deal has been approved by the Competition Commission of India, but with a big condition.
Another big deal of India's richest businessman Mukesh Ambani has now reached its final stage. To increase its dominance in OTT and media in the future, Reliance Group has been trying to buy the business of Star India from Disney for a long time. The Reliance-Disney deal has now received the final approval from the Competition Commission of India (CCI). However, CCI has also set a condition for Reliance to sell its 7 channels.
CCI gave a detailed decision in this regard on Tuesday. A few months ago, it had expressed apprehension that this deal would increase the risk of monopoly in the market and had also issued show cause notices to both the companies. The biggest impact of this deal is expected to be on the broadcasting rights of cricket tournaments in the country and its advertising rights and costs.
The company has to sell these 7 channels
Now the CCI, in its 48-page order, has detailed some of the terms of the deal related to the merger of the media assets of Reliance Industries and Walt Disney. In which a condition has also been laid to sell 7 television channels of the company. This includes channels like Hungama and Super Hungama.
In order to obtain CCI approval, the parties have voluntarily agreed not to combine the sale of TV advertising slots with IPL, ICC and BCCI cricket rights for the remaining period of the existing broadcast rights.
The parties have told the Competition Commission that they will not increase advertising rates for ICC and IPL events on their TV and OTT platforms to unreasonable levels as long as they have the existing broadcast rights.
Paving the way for a deal worth Rs 70,000 crore
CCI on August 28 said it has approved the merger of the media assets of Reliance Industries and Walt Disney Company, namely Viacom 18 and Star India. After this, the way has been cleared for the country's biggest media deal worth Rs 70,000 crore.
After the merger, the new company will have about 120 TV channels and 2 OTT platforms. However, there is a possibility that OTT platforms like Jio Cinema will merge with Disney+Hotstar.