Walt Disney Co (NYSE:DIS, ETR:WDP) and Reliance Industries have won the approval of Indian antitrust regulators for an $8.5 billion merger of their Indian assets after reportedly addressing concerns about cricket broadcasting rights.
The Competition Commission of India (CCI) said in a post on the social media platform X that the deal had been approved after the companies submitted “voluntary modifications.” No further details of the modifications were shared.
Before approving the merger, the CCI asked Disney and Reliance more than 100 questions, raising concerns about how the combined business would control most of the rights for cricket matches on TV and streaming and could harm advertisers.
C-2024/05/1155 Commission approves the proposed combination involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited and Star Television Productions Limited, subject to the compliance of voluntary modifications. pic.twitter.com/S2JVzw2VgR
— CCI (@CCI_India) August 28, 2024
A person with knowledge of the matter told Reuters that the companies made concessions, including committing to not raising advertising rates unreasonably for streamed cricket matches and selling seven to eight non-sports TV channels.
They have also agreed not to bundle and sell advertising slots for cricket tournaments and to keep subscription rates for their offerings under regulatory limits, the source told the publication.
Disney and Reliance are yet to comment on the CCI's approval.
Shares of Disney traded down 2% at US$89 late morning on Wednesday.