Concerns Over $8.5 Billion Reliance-Disney Merger

$8.5 Billion Reliance-Disney Merger

India’s antitrust body, the Competition Commission of India (CCI), is concerned that the $8.5 billion merger of Reliance and Walt Disney’s media assets could hurt competition. This is mainly because the merged company would have a lot of control over cricket broadcast rights.

The CCI has privately informed Disney and Reliance about its concerns and has asked them to explain why a full investigation into the merger should not be conducted. This is a significant hurdle for their planned merger.

latest details: Concerns Over $8.5 Billion Reliance-Disney Merger

Antitrust experts had predicted that the merger, announced in February, might face strong scrutiny. This is because it would create India’s largest entertainment company, which would compete with Sony, Zee Entertainment, Netflix, and Amazon. The new company would have 120 TV channels and two streaming services.

The Competition Commission of India (CCI) had earlier asked Reliance and Disney around 100 questions about the merger. To address concerns about market power and speed up approval, the companies have offered to sell fewer than 10 TV channels, according to sources.

Disclaimer: This information is for educational purposes only and not investment advice. Always consult with a financial advisor before making any investment decisions.

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