Disney, Reliance Offer Concessions For $8.5-Bn Media Merger; Refuse To Sell Cricket Broadcast Rights

Disney-Reliance Merger: The merger aims to create India’s largest entertainment player, with over 120 TV channels and two streaming platforms to compete with giants like Sony, Netflix, and Amazon

Disney and Reliance have indicated their willingness to divest fewer than 10 TV channels, a move aimed at securing faster approval from the CCI.

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Disney-Reliance Merger: Disney and Reliance have offered concessions to secure antitrust approval for their $8.5 billion media merger in India but remain firm on retaining cricket broadcast rights, sources familiar with the matter told news agency Reuters. The Competition Commission of India (CCI) previously issued a warning, citing concerns that the combined entity could dominate cricket broadcasting across TV and streaming platforms, potentially harming advertisers, according to a Reuters report earlier this week.

In response, Disney and Reliance have proposed to moderate advertising rate increases, sources said, but stopped short of offering to sell any cricket rights, the most valuable asset in the merger.

The merger aims to create India’s largest entertainment player, with over 120 TV channels and two streaming platforms to compete with giants like Sony, Netflix, and Amazon. Cricket, with its massive fan base in the country, is considered the centerpiece of the deal.

Disney-Reliance Merger: Antitrust experts had suggested selling some cricket rights — either for specific tournaments or platforms — could help overcome regulatory hurdles. However, the companies have privately informed the CCI that they are unwilling to do so, sources said. Instead, they have committed to avoiding unreasonable increases in advertising rates during cricket matches.

The companies have yet to commit to price caps or freezes on ad rate hikes, a source added. Antitrust experts believe the merger may require more significant changes, including selling some broadcast rights or limiting ad rates, to gain CCI approval.

Cricket rights are seen as too valuable for Disney and Reliance to relinquish, given that the companies have invested approximately $9.5 billion in securing them, said one source. The CCI is expected to review the latest submissions to determine if the concessions are sufficient or if a broader investigation is necessary.

Both companies have used free cricket streaming to drive viewers to their platforms in hopes of converting them into paid subscribers. Jefferies estimates that the merged entity would control 40 per cent of the TV and streaming ad market in India.

To address competition concerns, Disney and Reliance have indicated their willingness to divest fewer than 10 TV channels, a move aimed at securing faster approval from the CCI. However, cricket broadcasting remains a non-negotiable asset in the deal.