Reliance Industries and Walt Disney have sought antitrust clearance for his or her $8.5 billion India media merger by arguing their mixed energy, particularly on cricket broadcasting, is not going to hit advertisers, two folks with direct data advised Reuters.
The deal, introduced in February, has been anticipated by consultants to face intense scrutiny as it’s going to create India’s largest leisure participant with 120 TV channels and two streaming providers. It would additionally personal profitable rights for cricket, India’s high sport.
Reliance and Disney have advised the Competitors Fee of India (CCI) the cricket rights had been obtained individually below a bidding course of which was aggressive, stated the 2 sources, who declined to be named because the approval course of is confidential.
The businesses argue different opponents will not be harmed as they’ll bid when these rights expire in 2027 and 2028, the sources added.
The CCI will now evaluate the confidential submitting. Although any clearance usually takes a number of weeks, it may well take longer if the watchdog is not happy and seeks extra info.
Reliance, Walt Disney and the CCI didn’t instantly reply to requests for remark.
Disney and Reliance at the moment personal digital and TV cricket rights value billions of {dollars} for the world’s most beneficial cricket match the Indian Premier League, Worldwide Cricket Council matches and people of the Indian cricket board.
That has raised considerations the merged entity may have excessive leverage over advertisers and customers, with Ok.Ok Sharma, a former head of mergers at CCI, saying in March the regulator might be involved as “hardly something of cricket can be left” as Disney-Reliance could have “absolute management over cricket”.
Jefferies has estimated the Disney-Reliance entity will command a 40% share of the promoting market in TV and streaming segments.
The businesses have advised the CCI of their submitting there can be no impression on advertisers as cricket-watching customers could be focused on many rival platforms the place in addition they eat content material, together with YouTube and Meta, the sources stated.
Equally, the businesses have stated, Indians eat content material throughout TV channels, social media and streaming apps, and advertisers is not going to be deprived by the deal.
“The strains are blurring (between TV and digital). Corporations goal by demographics. If they do not like advert charges on the Disney-Reliance entity, they’ll all the time goal a shopper” elsewhere, stated the primary supply.
The deal is about to reshape India’s $28 billion media and leisure market, the place the Reliance-Disney combo will compete with Netflix, Amazon Prime, Zee Leisure and Sony.
© Thomson Reuters 2024
