Disney and Reliance Merger In India Has Been Approved Subject To Modifications Over Cricket

The Competition Commission of India (CCI) has approved the $8.5 billion merger between the Walt Disney Company and the Indian company Reliance Industries.

Last week, there appeared to be some issues with the merger, mostly over the amount of control Disney/Reliance would have over cricket. Advertisers were concerned that the newly formed venture would have a large market share over televised matches, which could result in significant price hikes for advertising spots.

According to Reuters, the merger was approved “subject to modifications submitted voluntarily by the companies.”

It was suggested that Disney and Reliance could agree to keep prices locked for a period of time to offset the concerns, which does seem to be what they did.

“…the two companies have offered concessions, including a commitment to not raise advertising rates unreasonably for streamed cricket matches, and to sell 7-8 non-sports TV channels, a source familiar with the matter said.”

Disney is counting on this merger to give them more leverage in India. Previously, their Disney+ HotStar had cricket rights, but they lost them, and their subscriber base started to drop. They are hoping a partnership with Reliance will boost both companies to compete more effectively against competitors like Netflix, Sony, Amazon, and more.

News of the approval came ahead of Reliance Industries shareholder meeting, so it was fortunate timing for both companies.

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