Disney, RIL May Shut Some Channels To Get CCI Approval For Merger: Report

After the merger, the combined entity would hold over 40 per cent of the market share across Hindi, Kannada, Bangla, and Marathi channels, giving it major dominance in the sports broadcasting sector

Walt Disney and Reliance Industries Ltd (RIL) have proposed shutting down several Hindi and regional channels from Star India and Viacom18 as part of their strategy to secure approval from the Competition Commission of India (CCI) for their proposed merger, according to a report by The Economic Times.

To facilitate the merger, the companies are considering closing some secondary Hindi general entertainment channels (GECs) while maintaining their primary GECs, Star Plus and Colors, within the merged entity. Additionally, they plan to discontinue certain channels in Kannada, Marathi, and Bangla.

Following the merger, the combined entity would hold over 40 per cent of the market share across Hindi, Kannada, Bangla, and Marathi channels, giving it significant dominance in the sports broadcasting sector. The merger would also grant the entity exclusive rights to major cricket and non-cricket events, according to the report.

The CCI views any entity with a market share exceeding 40 per cent in a particular category as dominant. As previously reported, the Reliance-Disney merger, announced in February, is likely to face rigorous scrutiny due to its potential to form the largest entertainment conglomerate in the country. This merged entity would compete with Sony, Zee Entertainment, Netflix, and Amazon, operating 120 TV channels and two streaming services.

According to sources cited by The Economic Times, the two companies are optimistic that the CCI will not mandate the closure or divestment of their primary Hindi general entertainment channels, Star Plus and Colors, nor require them to relinquish specific cricket assets.

RIL and Disney aim to finalise their merger by October, with a deadline of February 2026 to complete the entire process. The CCI has consulted with various media and entertainment firms to evaluate the potential impact of the merger on the sector.

It has been reported that one broadcaster has suggested to the CCI that Star-Viacom18 should be required to relinquish some cricket assets. This recommendation stems from concerns that the merged entity could dominate the sports sector due to its extensive portfolio, which includes major properties such as the IPL, ICC, BCCI, Premier League, Pro Kabaddi League, and Indian Super League. However, Reliance and Disney have previously informed the CCI that their acquisition of cricket rights was through a competitive bidding process.