"Regulatory Authorities Conditionally Approve Disney-Reliance Joint Venture"

"Concerns Over Cricket Broadcast Rights Monopoly Resolved"
Birth of an $8.5 Billion Media Giant

Major foreign media reported on the 28th (local time) that the joint venture between the world's largest entertainment company Walt Disney Company and India's media giant Reliance Industries has received conditional approval from Indian regulatory authorities.

According to reports, the Competition Commission of India (CCI) conditionally approved the establishment of a media joint venture worth $8.5 billion (approximately 11.35 trillion KRW) between Disney and Reliance, which was under investigation under the antitrust law. Once the merger is completed, it will create India's largest entertainment giant offering 120 TV channels and 2 over-the-top (OTT) online video services.

[Image source=Reuters Yonhap News]

Earlier, Disney announced in February that it had signed a contract to establish a new joint venture by integrating its Indian subsidiary 'Star India' and Reliance's 'Viacom 18' business unit.

However, the CCI raised concerns that the joint venture would monopolize the broadcasting rights of cricket, India's most popular sport, negatively affecting advertisers, and thus put a brake on the merger. CNBC explained that in recent years, Disney and Reliance have spent about $9.5 billion acquiring streaming and broadcasting rights for various cricket matches, including the Indian Premier League.

Sources familiar with the matter said the two companies made concessions to finalize the merger. They promised not to unfairly raise streaming advertising fees for cricket matches or set OTT subscription fees outside regulatory scope. They also reportedly agreed to sell 7 to 8 non-sports TV channels.

Once the joint venture is established, Reliance will effectively hold control. The wife of Mukesh Ambani, the owner of Reliance and one of Asia's richest people, is expected to take the chairperson position of the joint venture. Disney will own a 36.84% stake.

KK Sharma, former head of mergers at the CCI, pointed out that if the deal is approved, "a catfish will be born in the Indian media market," warning that "they will monopolize cricket advertising revenue." Investment bank Jefferies predicted that the joint venture between Disney and Reliance will account for 40% of the Indian TV and streaming advertising market pie.

Meanwhile, on the same day, Disney's stock price on the New York Stock Exchange closed at $89.49, down 1.55% from the previous session.

This content was produced with the assistance of AI translation services.