Reliance seeks green light from CCI for Viacom18-Star merger

Reliance Industries, led by billionaire Mukesh Ambani, has requested approval from the Competition Commission of India (CCI) for a massive $8.5 billion merger of its media subsidiary Viacom18 with Star India, owned by Walt Disney.

The deal aims to combine the entertainment operations of both companies, creating a powerful media giant in India.

Joint Venture: After the merger, Star India, currently fully owned by Disney, will become a joint venture co-controlled by Reliance, Viacom18, and existing Disney subsidiaries.

Market Dominance: Reliance argues the merger won't negatively impact competition. However, they acknowledge areas of potential overlap, including content licensing, TV channel distribution, and advertising sales.

Star India: Owned by Disney, Star India is a major player in Indian media, encompassing television broadcasting, movie production, and an OTT platform.

Viacom18: Owned by Reliance Industries, Viacom18 operates TV channels, an OTT platform in India and globally, and is involved in film production and distribution.

If approved, this merger would create the leading force in Indian media and entertainment. The combined entity would boast:

• Over 100 channels across various languages
• Two leading OTT platforms
• A viewer base exceeding 750 million in India
• Leadership and Ownership Structure

Nita Ambani, wife of Mukesh Ambani, will chair the new joint venture, with Uday Shankar serving as Vice Chairperson. Reliance and its affiliates will hold a majority stake (63.16%) in the merged entity, with Disney retaining a significant share (36.84%). Reliance has also committed to investing heavily (around Rs 11,500 crore) to strengthen the combined OTT business.