Viacom18 and Star India's massive media and entertainment merger gets CCI Approval

The merger of Viacom18 and Star India has been approved by the CCI to make India’s largest media and entertainment firm with Reliance Industries controlling 56 per cent therein.

The Competition Commission of India (CCI) has given its nod to the grand merger of Reliance Industries-backed Viacom18 and Walt Disney’s Star India. The 48-page long order issued in detail contains several riders out of which notable are the divestment of seven TV channels including Hungama and Super Hungama, among others.

The parties to the merger have also mutually agreed to not bundle TV advertising slots when selling the cricket rights for IPL, ICC, BCCI and other high demand cricketing tournaments, until the current rights are in place. Also, during the same period, the OTT advertising slot sales for these rights will not be bundled.

These companies also agreed not to raise advertisement costs on their television channels and streaming services during major sporting activities to unreasonable prices until the given rights are active.

The merger, which was originally approved in August, is expected to create India’s largest media and entertainment player. Reliance will own 56% in the new entity, 37% will be for Disney and the remaining 7% for Bodhi Tree Systems. The value of the merged entity is Rs. 70,352 crores.

Reliance will invest Rs. 11,500 crores in the merging firm which will result in more than Rs. 22,000 crores in the media and entertainment industry so far. This merger also sees Paramount Global exiting its 13% stake in Viacom18, after selling the stake to Reliance for Rs. 4,286 crore. Nita Ambani will be chairperson and Uday Shankar vice chairperson of the new organization.