The Competition Commission of India (CCI) has released a 48-page order approving the major merger between Reliance Industries and Walt Disney’s media assets. The approval comes with certain conditions, one of which includes selling off seven TV channels.
To gain approval from the regulator, both companies agreed not to bundle TV ad slots for IPL, ICC, and BCCI cricket rights until the current rights period ends.
Additionally, the companies will divest seven TV channels, including Hungama and Super Hungama.
CCI Approves Reliance-Disney Merger
The Competition Commission of India (CCI) has given its approval for a big merger between Reliance Industries and Walt Disney’s media assets. This approval was outlined in a 48-page report and comes with several important conditions that both companies need to follow.
One key condition is that Reliance and Disney have agreed not to bundle, or combine, TV advertising slots for major cricket events like the IPL, ICC tournaments, and BCCI matches. This rule will stay in place until the current rights for these cricket events expire.
Another significant condition is that Reliance and Disney must sell seven of their TV channels. This includes popular channels like Hungama and Super Hungama. The sale of these channels is required as part of the approval process for the merger.
By following these conditions, the companies can move forward with their merger plans while ensuring fair competition in the media industry.
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Reliance-Disney Commit to Fair Advertising Practices in Cricket Rights Deal
The companies have made a commitment not to combine TV ad slots for the cricketing rights they hold, specifically for IPL, ICC, and BCCI events, for the rest of the time they have these rights. This means they won’t offer ad slots for all three together in one package.
They’ve also agreed to follow the same rule for selling ad slots on OTT platforms, keeping the IPL, ICC, and BCCI rights separate for the remaining duration of their contracts.
Additionally, the companies have assured that they will not unfairly increase the cost of advertisements on both TV and streaming services for ICC and IPL events while they still control these rights. This is to ensure that ad prices stay reasonable during this period.
On August 28, the Competition Commission of India (CCI) gave the green light for the merger between the media assets of Reliance Industries and The Walt Disney Company. This merger is set to create India’s largest media company, worth over Rs 70,000 crore.
This deal, which was announced earlier this year, was carefully examined by the CCI. The approval was only granted after the companies made some changes to the original plan, to make sure it didn’t harm competition in the market.
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Reliance-Disney Merger FAQs
Q.1. What is the main purpose of the CCI’s approval of the Reliance-Disney merger?
Ans. The CCI aims to ensure fair competition in the media industry by setting conditions for the merger, including the sale of certain TV channels and restrictions on bundled ad sales.
Q.2. What are the key conditions imposed by the CCI on the Reliance-Disney merger?
Ans. The key conditions include not bundling TV ad slots for IPL, ICC, and BCCI cricket rights and divesting seven TV channels, including Hungama and Super Hungama.
Q.3. How many TV channels must Reliance and Disney sell as part of the merger conditions?
Ans. Reliance and Disney must sell seven TV channels, which include popular channels like Hungama and Super Hungama.
Q.4. What will happen to advertisement rates for ICC and IPL events after the merger?
Ans. The companies have committed to keeping advertisement rates reasonable and will not unfairly increase costs for ICC and IPL events while holding the rights.
Q.5. Why was the merger closely examined by the CCI?
Ans. The CCI examined the merger to ensure it wouldn’t harm competition in the market and granted approval only after the companies agreed to modify their original transaction plan.
