Aug 18, 2024 03:26 PM IST
Disney and Reliance may shut some Hindi and regional channels for CCI merger approval, but keep Star Plus and Colors operational
Walt Disney and Reliance Industries Ltd (RIL) are planning to shut down some Hindi as well as regional channels including those in Kannada, Marathi, and Bangla of Star India and Viacom18, the Economic Times reported, adding that this move is to get approval from the Competition Commission of India (CCI) for their merger, which was proposed in February this year.
Why does Reliance and Disney require CCI’s approval to merge?
The CCI considers entities with a market share more than 40% in any specific category as dominant.
What would be the end result of the Disney and Reliance merger if it is approved by the CCI?
If the merger is approved, the combined entity would control more than 40% of the market share, competing with Sony, Zee Entertainment, Netflix and Amazon, with 120 TV channels and two streaming services.
The new entity will also dominate sports broadcasting, with exclusive rights to important cricket and non-cricket events, according to the report.
When will the merger be finalised and how will the leadership structure be?
The merger is aimed to be finalised by October, with February 2026 as a deadline to complete the process. RIL will have a 56% controlling stake and Disney will get a 37% stake. James Murdoch and Uday Shankar’s Bodhi Tree Systems ill have a 7% share. Shankar may be the vice-chairperson and Nita Ambani may be the chairperson.
