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CCI approves Reliance and Disney merger: The Competition Commission of India (CCI) has approved the merger of Reliance and Disney. This entertainment business will be a merger of Rs. 70350 crore. CCI said, “The Commission has approved the proposed merger of Reliance Industries Limited, Viacom 18 Media Private Limited, Digital 18 Media Limited, Star India Private Limited and Star Television Production Limited on August 28, 2024.”
CCI expressed concern over the merger
CCI had earlier expressed concern over the merger that the new merged entity would control the majority of cricket and TV broadcasting rights in India, causing losses to advertising companies and also increasing competition among other competitors.
India's largest entertainment company
With this merger, it will become India's largest entertainment company with 120 TV channels and two streaming services. Reliance will have a 63.16% stake in the deal and Walt Disney will have the remaining 36.84%. The new company's board will have 10 people. Which will have 5 from Reliance, 3 from Disney and 2 independent directors. The merger is expected to be completed in the first 6 months of next year. Nita Ambani will be the chairperson of the company formed after the merger. Former Walt Disney executive Uday Shankar will be the vice-chairman of the company.
After this deal, Viacom18's media arm will merge with Star India Private Limited. Which will be done under the arrangement approved by the court. The value of this joint venture is Rs. 70,350 crore in which Reliance will invest Rs. 11,500 crore.
