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Reliance, Disney seek India antitrust nod with cricket rights guarantee, sources say

Dependence Industries and Walt Disney have looked for antitrust clearance for their $8.5. billion India media merger by arguing their combined power,. especially on cricket broadcasting, will not strike advertisers,. 2 people with direct understanding informed .

The deal, announced in February, has been anticipated by. professionals to face intense examination as it will create India's. biggest home entertainment gamer with 120 television channels and 2. streaming services. It will also own profitable rights for. cricket, India's leading sport.

Dependence and Disney have told the Competitors Commission of. India (CCI) the cricket rights were gotten independently under a. bidding process which was competitive, stated the two sources, who. decreased to be named as the approval process is personal.

The companies argue other competitors won't be damaged as. they can bid when those rights expire in 2027 and 2028, the. sources included.

The CCI will now evaluate the confidential filing. Though any. clearance usually takes numerous weeks, it can take longer if. the guard dog isn't pleased and looks for more info.

Dependence, Walt Disney and the CCI did not. immediately react to requests for remark.

Disney and Reliance presently own digital and television cricket. rights worth billions of dollars for the world's most important. cricket competition the Indian Premier League, International. Cricket Council matches and those of the Indian cricket board.

That has actually raised issues the merged entity could have high. utilize over advertisers and consumers, with K.K Sharma, a. former head of mergers at CCI, stating in March the regulator. might be concerned as hardly anything of cricket will be left. as Disney-Reliance will have outright control over cricket.

Jefferies has actually approximated the Disney-Reliance entity will. command a 40% share of the marketing market in television and. streaming sectors.

The business have actually told the CCI in their filing there will. be no impact on marketers as cricket-watching customers can be. targeted on numerous rival platforms where they also take in. content, including YouTube and Meta, the sources stated.

Likewise, the companies have actually said, Indians take in material. across TV channels, social networks and streaming apps, and. marketers will not be disadvantaged by the offer.

The lines are blurring (between television and digital). Companies. target by demographics. If they do not like ad rates on the. Disney-Reliance entity, they can always target a customer. somewhere else, said the very first source.

The offer is set to improve India's $28 billion media and. home entertainment market, where the Reliance-Disney combination will. compete with Netflix, Amazon Prime, Zee Home Entertainment. and Sony.