India's competition authority, the Competition Commission of India (CCI), has given the green light to a massive merger involving Reliance Industries Ltd. and Disney's Indian media businesses. The deal, valued at Rs 70,350 crore (about $8.5 billion), will combine several big media companies into a powerful new entity. However, this approval comes with certain conditions, known as "voluntary modifications," which the companies have agreed to follow.

What Does the Merger Include?

The merger involves several companies:

• Reliance Industries Ltd.
• Viacom18 Media Pvt Ltd.
• Digital18 Media Ltd.
• Star India Pvt Ltd.
• Star Television Productions Ltd.

These companies will come together to form a huge media company, creating a strong competitor in India's entertainment sector.

Why the Conditions?

The CCI has placed conditions on this merger to ensure fair competition. According to Dharmendra Kumar, the former chairperson of the CCI, these modifications are designed to avoid creating a single dominant player in cricket broadcasting. The conditions aim to make sure that more people across India can access cricket coverage and that competition remains healthy in the media market.

What Assets Are Involved?

Disney-Star currently holds exclusive rights to major cricket events, including:

• ICC events (2024 to 2027)
• IPL broadcasting rights (2023 to 2028)

Meanwhile, Jio, which is part of Reliance, has streaming rights for the IPL.

Key Details of the Merger

• The merger will result in India's largest TV and digital streaming company.
• Viacom18, a unit of Reliance Industries, will merge its operations with Star India Pvt Ltd under a court-approved plan.
• Reliance will invest Rs 11,500 crore ($1.4 billion) into the new venture to support growth.

Future of the Combined Company

The combined entity will compete with other major players like Sony, Netflix, and Amazon, and will control 120 TV channels and two streaming services. The company will have a new board of 10 members:

• Five nominated by Reliance Industries
• Three by Disney
• Two independent directors

Nita Ambani will serve as the Chairperson, and Uday Shankar, a former Disney executive, will join as Vice Chairperson.

Timeline and Ownership

• The merger is expected to be finalized by the end of 2024 or early 2025.
• Reliance will hold a 16.34% stake, Viacom18 will hold 46.82%, and Disney will hold 36.84%, with Reliance retaining overall control.