Reliance Industries and Walt Disney have sought antitrust clearance for their proposed $8.5 billion merger in the Indian media market by asserting that their combined dominance, particularly in cricket broadcasting, will not adversely impact advertisers, according to two sources with direct knowledge of the matter.
.jpeg)
The merger, announced in February, is set to create India's largest entertainment entity, encompassing 120 television channels and two streaming services. It will also control lucrative cricket broadcasting rights, a critical asset in a cricket-crazy nation.
Reliance and Disney have informed the Competition Commission of India (CCI) that the cricket rights in question were acquired through competitive bidding processes, the sources, who requested anonymity due to the confidentiality of the approval process, revealed. They argue that competitors will have opportunities to bid for these rights when they come up for renewal in 2027 and 2028.
The CCI will now evaluate the confidential submission, a process that typically takes several weeks but can extend longer if further information is required.
Currently, Disney and Reliance collectively hold digital and TV rights for major cricket tournaments, including the Indian Premier League, International Cricket Council matches, and events organized by the Indian cricket board. This has sparked concerns that the merged entity could wield significant leverage over advertisers and consumers. K.K. Sharma, a former head of mergers at CCI, remarked in March that such control might be troubling, noting that "hardly anything of cricket will be left" outside their purview, which could lead to "absolute control over cricket."
Jefferies has estimated that the Disney-Reliance entity would capture a 40% share of the advertising market in TV and streaming segments. However, the companies have assured the CCI that advertisers would not be negatively affected because cricket-watching audiences can still be reached through various other platforms, such as YouTube and Meta, as well as other TV channels, social media, and streaming apps.
"The lines are blurring (between TV and digital). Companies target by demographics. If they don't like ad rates on the Disney-Reliance entity, they can always target a consumer elsewhere," said one source.
The outcome of the CCI's review will be closely watched, as it will set a precedent for the regulatory approach to major media consolidations in India.