The proposed merger of entertainment giant Disney and conglomerate Reliance in India has received a green light from the country’s regulators.
Disney and Reliance have agreed to merge their television and streaming assets into one entity earlier in 2024. The $8.5 billion deal set the groundwork for creating the largest entertainment company in India, which attracted the attention of regulators.
The biggest issue was the fact that Disney and Reliance’s would have a monopoly on broadcasting rights for cricket, the country’s most popular sport, which would lead to unfavorable conditions for advertisers.
Despite the pressure, Disney and Reliance refused to give up any cricket broadcasting rights but promised to abstain from excessive hikes of “advertising rates.” It also promised to sell some of its TV channels that don’t include sports broadcasting.
This apparently was enough to convince the Competition Commission of India (CCI) to approve the merger earlier this week. The National Company Law Tribunal (NCLT) followed in the same way, clearing the merger in a decision published on Friday.
Announcing its decision, India’s competition watchdog said that the merger is “subject to the compliance of voluntary modifications.”
After clearing the regulatory hurdles, Disney and Reliance are expected to finalize the merger in the next six months.