Reliance and Walt Disney have offered to sell a few channels to win faster antitrust approval for their $8.5 billion merger of Indian media assets.
However, they have firmly opposed any alterations to the cricket broadcast rights they hold, as per media reports.
The merged company, with Reliance holding the majority stake, will secure valuable broadcast rights worth billions of dollars for cricket, sparking concerns about increased pricing power and dominance over advertisers.
After the Competition Commission of India (CCI) privately questioned Reliance and Disney with around 100 inquiries concerning their merger, the companies responded by expressing their willingness to sell fewer than 10 TV channels. This move aims to address concerns about market dominance and secure early approval, according to reports.
Some concessions being offered pertain to regional Indian language channels, where the two companies potentially hold a dominant market share.
Cricket is a key issue in the merger process due to its immense popularity in India, making it highly desirable for advertisers. A Disney-Reliance entity will command a 40% share of the advertising market across TV and streaming segments, reports stated.
Once the merger is finalised, the joint venture will be controlled by Reliance Industries, holding a 16.34% stake, while Viacom18 and Disney will own 46.82% and 36.84% of the stakes, respectively.
