In an intriguing move to make magic in the Indian media landscape, Disney and Reliance have made certain concessions aiming to secure antitrust approval for their $8.5 billion merger. This alliance is designed to craft India’s largest entertainment player, strong enough to compete with giants like Sony, Netflix, and Amazon. An integral part of this combination is the 120 TV channels and two major streaming services the merged entity would control.
Yet, the jewel in this realm is undoubtedly the cricket broadcasting rights, an asset commanding fanatic admiration across India. The Competition Commission of India (CCI) recently expressed concerns about Disney and Reliance’s dominant hold over these rights, potentially leading to substantial control that could impact advertisers adversely.
In their strategic counter, Disney and Reliance proposed to moderate advertising rate increases, proactively committing not to impose unreasonable hikes. However, they remain steadfast in their position not to divest any cricket broadcasting rights, a suggestion some antitrust experts believed could ease the merger process.
Disney and Reliance’s proposal makes clear their resolve to retain these premier cricket rights, refusing to compromise on this asset despite regulatory pressure. The private submission to the CCI underscores their refusal to entertain any sale of cricket rights, five sources familiar with the matter have confirmed. This determination to hold onto cricket rights signals their strategy to hold the line on a key aspect of their future dominance in the Indian market.
Neither Disney, Reliance, nor the CCI provided immediate comments on these developments. Thus, the narrative of a potential blockbuster merger remains one to watch closely, as the next steps unfold through both corporate and regulatory lenses.
What do you think, Disney fans? Will this powerhouse merger score a six or get caught at the boundary? Share your thoughts below and let’s continue this conversation!
Source: [MarketScreener](https://www.marketscreener.com/quote/stock/WALT-DISNEY-COMPANY-THE-4842/news/Exclusive-Disney-Reliance-offer-concessions-for-India-merger-but-no-cricket-rights-sale-47712424/)
