Reliance, Disney offer to sell few channels to win antitrust approval for media merger

Reliance and Walt Disney have offered to sell some channels to win faster antitrust approval for their $8.5 billion India media assets merger. The companies are however resisting changes to cricket broadcast rights they own. Antitrust experts have warned that the Reliance-Disney merger could face intense scrutiny as it will create India’s biggest entertainment player.  With a combined 120 TV channels and two streaming services, the entertainment company will compete with Sony, Zee Entertainment, Netflix and Amazon.

The newly merged company, predominantly controlled by Mukesh Ambani’s Reliance—Asia’s wealthiest individual—will hold valuable broadcasting rights for cricket worth billions of dollars. This raises concerns about its potential to influence pricing and dominate the advertising market.

After receiving around 100 questions from the Competition Commission of India (CCI) regarding their merger, Reliance and Disney have informed the regulator that they are prepared to sell fewer than 10 TV channels to address market power concerns and secure early approval, according to anonymous sources.

The sources noted that some of the concessions involve regional Indian language channels where the companies may have significant market share. In a similar situation, Zee and Sony had proposed creating a $10 billion TV giant in India and had offered to sell three channels as concessions in 2022, which helped them gain CCI approval. However, their merger ultimately fell through.