CCI approves Viacom18-Star India merger with conditions

The Competition Commission of India has approved the proposed combination involving Reliance Industries Limited (RIL), Viacom18 Media (Viacom18), Digital18 Media, Star India Private Limited (SIPL) and Star Television Productions Limited (STPL), subject to the compliance of voluntary modifications to mitigate potential competition concerns. While the details of these modifications remain confidential, the CCI’s decision is intended to ensure a fair and competitive landscape in the Indian media industry.

The merger, valued at $8.5 billion, had been under scrutiny by the CCI to prevent the formation of a monopoly or the significant reduction of market competition. The regulator's concerns focused primarily on the merger’s impact on cricket broadcasting rights, an area where the combined entity would wield substantial control.

The proposed combination envisages to combine the entertainment businesses (along with certain other identified businesses) of Viacom18, part of RIL group and SIPL, wholly owned by The Walt Disney Company (TWDC). As a result of the transaction, SIPL, currently a wholly-owned entity of TWDC through its subsidiaries, shall become a joint venture (JV), which will be jointly held by RIL, Viacom18 and existing TWDC subsidiaries.

On February 28, 2024, Star India signed a definitive agreement with Reliance Industries Limited (RIL) and Viacom18 Media Private Limited to establish a joint venture. This merger will integrate their entertainment, sports, pay TV, free-to-air networks, direct-to-consumer services, library content, and certain production businesses.

RIL, either directly or indirectly, is engaged in several businesses such as exploration and production of oil and gas; petroleum refining and marketing; manufacture and sale of petrochemicals; manufacture and sale of chemicals; organised retail; media and entertainment activities; and telecommunication and digital services in India and worldwide.  

Viacom18 is, inter alia, engaged in the business of broadcasting of television (TV) channels, operation of an OTT platform, selling commercial advertisement space on TV channels, licensing of merchandise, and organization of live events in India and worldwide. Viacom18 is also engaged in the business of production and distribution of motion pictures.

SIPL is engaged in a range of media activities, including TV broadcasting and the production of AV content and motion pictures, operation of an OTT platform, and selling commercial advertisement space on TV channels and OTT platforms. SIPL is, directly or indirectly, a wholly-owned entity of TWDC.

STPL is a company incorporated in the British Virgin Islands and owned, indirectly, by TWDC.

The Commission approved the proposed combination subject to the compliance of voluntary modifications.

Also Read: CCI Flags Competition Concerns Over $8.5B Reliance-Disney Merger