Reliance Industries and Walt Disney have sought antitrust clearance for his or her $8.5 billion India media merger by arguing their mixed energy, particularly on cricket broadcasting, won’t hit advertisers, two folks with direct information instructed Reuters.
The deal, introduced in February, has been anticipated by specialists to face intense scrutiny as it can create India’s largest leisure participant with 120 TV channels and two streaming providers. It should additionally personal profitable rights for cricket, India’s prime sport.
Reliance and Disney have instructed the Competitors Fee of India (CCI) the cricket rights have been obtained individually below a bidding course of which was aggressive, mentioned the 2 sources, who declined to be named because the approval course of is confidential.
The businesses argue different rivals will not be harmed as they will bid when these rights expire in 2027 and 2028, the sources added.
The CCI will now overview the confidential submitting. Although any clearance usually takes a number of weeks, it could take longer if the watchdog is not happy and seeks extra info.
Reliance, Walt Disney and the CCI didn’t instantly reply to requests for remark.
Disney and Reliance at present personal digital and TV cricket rights price billions of {dollars} for the world’s Most worthy cricket match the Indian Premier League, Worldwide Cricket Council matches and people of the Indian cricket board.
That has raised considerations the merged entity might have excessive leverage over advertisers and customers, with Ok.Ok Sharma, a former head of mergers at CCI, saying in March the regulator could possibly be involved as “hardly something of cricket will likely be left” as Disney-Reliance could have “absolute management over cricket”.
Jefferies has estimated the Disney-Reliance entity will command a 40% share of the promoting market in TV and streaming segments.
The businesses have instructed the CCI of their submitting there will likely be no impression on advertisers as cricket-watching customers may be focused on many rival platforms the place additionally they eat content material, together with YouTube and Meta, the sources mentioned.
Equally, the businesses have mentioned, Indians eat content material throughout TV channels, social media and streaming apps, and advertisers won’t be deprived by the deal.
“The strains are blurring (between TV and digital). Firms goal by demographics. If they do not like advert charges on the Disney-Reliance entity, they will at all times goal a client” elsewhere, mentioned the primary supply.
The deal is ready to reshape India’s $28 billion media and leisure market, the place the Reliance-Disney combo will compete with Netflix, Amazon Prime, Zee Leisure and Sony.
© Thomson Reuters 2024
