The Competition Commission of India (CCI) on Wednesday approved the mega $8.5 billion merger between Reliance Industries Limited and Disney’s Indian media assets. Starting from when it all started to recent developments, BrandWagon Online takes a look at this mega mergers’ timeline.
December 2023: Disney and Reliance – the start of merger talks
It all started in December 2023 when Reliance Industries and Walt Disney were reported to discussed to merge their Indian entertainment operations. It was reported that two sides discussed about a possible joint venture, where Reliance could acquire a majority stake. Most importantly, this merger was assumed to be creating one of India’s biggest entertainment empires. Setting it in competition with TV players like ZEE Entertainment and Sony and streaming giants like Netflix and Amazon Prime. As per the report, sources stated that companies disagreed over whether Disney or Reliance’s media unit is more valued.
February 28, 2024: The Walt Disney Company and RIL’s Viacom18 signed a legally binding agreement
All these speculations were proved to be correct when the Walt Disney Company and RIL’s Viacom18 signed a legally binding agreement on February 28, 2024. The agreement claimed to unite their media operations in India and create a joint venture which was aimed at integrating operations of Viacom18 and Star India. It was said that Reliance Industries would invest Rs 11,500 crore as part of its expansion plan. The joint venture was said to be valued at Rs 70,352 crore after money as a result of the transaction. It was also reported that, after completion of aforementioned procedures, reliance will possess 16.34% of the joint venture Viacom18 will control 46.82% and Disney will own 36.84%. Furthermore, the joint venture was said to have the authority to distribute Disney productions and movies in India. It had licenses for over 30 thousand Disney IP assets at the said time. It was also said that the JV will be led by Nita Ambani while Uday Shankar will serve as Vice Chairman and provide strategic direction.
August 20, 2024 : CCI flagged concerns over the merger deal, and cited cricket broadcast rights as a major issue
However, on August 20, 2024, it was reported that the CCI flagged concerns over the said merger deal and cited cricket broadcast rights as a major issue. It is believed that, the CCI’s apprehensions primarily stem from the combined entity’s control over cricket broadcast rights, a highly lucrative and influential segment in the Indian media market. Reportedly, Reliance-Disney addressed around 100 questions related to the merger, previously. The companies had offered to sell fewer than 10 television channels to alleviate concerns about their market power and expedite regulatory approval. However, CCI’s notice indicated that these concessions may not be sufficient.
August 28, 2024 : CCI approved the $8.5 billion merger
On August 28, CCI approved the $8.5 billion merger between Reliance Industries Limited (RIL) and Disney’s Indian media assets. The merger, subject to specific voluntary modifications, will create a new joint venture combining key media and entertainment assets. It is finally announced that, under the agreement, Reliance Industries will hold a 16.35 % stake in the joint venture, Viacom18 will hold 46.82% and Disney will retain a 36.84% stake. This merger will integrate Disney’s media assets in India with Reliance’s existing media operations including its subsidiary Viacom18.