INSUBCONTINENT EXCLUSIVE:
Reliance and Viacom18 will be holding 63.16 per cent stake in the combined entity, which will have two streaming services
Walt Disney will hold the remaining 36.84 per cent stake
involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited and Star
has not yet specified any voluntary modifications for the original merger deal made by the two companies
As per the PIB release, the competition watchdog is yet to give detailed follow-up of the approval.
Viacom18 has not issued any official
statement and Disney India has refused to comment on this matter.
This comes a day after Zee Entertainment and Sony Picture Networks
meeting (AGM).
In February this year, Viacom18 and Disney India's Star India announced a merger of their media assets
This merger makes the combined entity India's largest entertainment conglomerate with a portfolio of 120 channels
The new entity will have 40-45 per cent of the industry, as per Emkay's analyst report, which was released in February after the
announcement of the merger
As per the merger agreement, Reliance Industries will invest approximately $1.4 billion in the new entity, which will compete against Sony,
Netflix, Amazon and Zee.
Through this merger Star India will be a joint venture (JV) co-owned by Viacom18 and Disney
Additionally, under the terms of the agreement, Viacom18's media operations will be merged with Star India through a court-approved
scheme.
Reliance and Viacom18 will be holding 63.16 per cent stake in the combined entity, which will have two streaming services
productions in India, with a licence to more than 30,000 Disney content assets, as per Emkay's analyst report.
Earlier, CCI had issued
a warning regarding the merger as it raised concerns about the new entity gaining excessive control over cricket broadcasting rights,
thereby impacting advertisers
CCI had also posed around 100 questions to both companies regarding the merger.
Nita Ambani will serve as the chairperson of the JV, with
a portfolio of 120 channels and two streaming servicesThe JV will be controlled by RIL, of which 16.34% would be owned by RIL, 46.82% by
Viacom18, and 36.84% by DisneyThe merger is expected to be completed by the end of CY2024 or the first half of CY2025Earlier this month, CCI
raised concerns about the new entity gaining excessive control over cricket broadcasting rightsFirst Published: Aug 28 2024 | 8:03 PMIST
