India’s competition watchdog has given provisional approval for an $8.5 billion (£6.43 billion) merger between Disney and Reliance Industries, paving the way for the creation of the country’s largest entertainment company. The joint venture, in which billionaire Mukesh Ambani’s Reliance Industries will hold a majority stake, will position the entity as a major competitor against global giants like Sony, Netflix, and Amazon in the Indian market.
The merger will grant the new entity significant broadcasting rights, including those for India’s most popular sport, cricket. This includes highly sought-after tournaments such as the Indian Premier League (IPL), T20 World Cups, and other events organized by the International Cricket Council (ICC).
According to reports, the merger is expected to be finalized within the next six months, with Nita Ambani, wife of Mukesh Ambani, set to chair the joint venture. The competition watchdog has approved the deal on the condition that the companies comply with “voluntary modifications,” including assurances not to excessively increase advertising rates for cricket match streams.
Previously, the competition authority had expressed concerns regarding the merger’s potential to give the companies overwhelming control over cricket broadcasting rights, which could lead to higher advertising costs. However, both Disney and Reliance have reportedly agreed to address these concerns by maintaining balanced advertising rates and divesting seven to eight non-sports TV channels to ensure a fair market environment.
In addition to cricket, the merger will give the joint venture Indian broadcasting rights for other major sports events, including Wimbledon, MotoGP, and the English Premier League (EPL).
Gurmeet Chadha, managing partner of financial consultancy Complete Circle, described the merger as a game-changer for India’s digital entertainment landscape. “This deal creates a massive digital entertainment giant with unparalleled content muscle, technological capabilities, and distribution reach,” Chadha said. He emphasized the long-term implications of the merger in a country with a population of 1.4 billion and 90% internet penetration.
The merger reflects the growing demand for digital content in India and the strategic importance of sports broadcasting rights in attracting subscribers to streaming platforms. With this move, Disney and Reliance aim to solidify their dominance in the Indian entertainment sector.