CCI ground rules for RIL-Disney merger – Cricket ad slots, divestment of 7 channels

The Competition Commission of India has laid out various conditions that will need to be met while giving its approval to the Reliance Industries and Disney Star merger.

As part of the conditions laid, the merger parties have voluntarily agreed not to bundle the TV ad slots for cricket rights of IPL, ICC and BCCI till the end of existing rights. The parties have also agreed to divest in seven TV channels, including Hungama and Super Hungama.

The proposed combination envisages the merger of entertainment businesses of Viacom18 and The Walt Disney Company in India. Pursuant to the proposed combination, Star India Pvt Ltd shall be a joint venture and house digital and linear TV entertainment businesses of Viacom18 and The Walt Disney Company.

The proposed combination will take place pursuant to the following broad steps/ transactions:

Slump sale of the media operations undertaking and Jio Cinema undertaking by Viacom18 to Digital18, and demerger of the Viacom18 business in Star India Pvt Ltd.

Acquisition by RIL of 10.89% stake Viacom18 from MTV Asia Ventures and 2.12% equity shareholding in Viacom18 from Nickleodeon Asia. Paramount Global will exit its investment in Viacom18 pursuant to the Paramount buy-out.

Viacom18 will acquire 65% shareholding in Football Sports Development from RIL and 50% shareholding in IndiaCast Media Distribution from TV18 Broadcast.

The merger parties will divest the following channels:

• Star Jalsha Movies and Star Jalsha Movies HD
• Colors Marathi and Colors Marathi HD
• Kannada GEC Colors Super
• Hungama and Super Hungama

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