European Commission approves Reliance-Disney merger deal
The European Commission has approved the merger of Reliance Industries and Walt Disney The collaboration will create India's largest media conglomerate, worth an estimated $8.5 billion. The merger will bring over 100 television channels and two streaming platforms under its umbrella. The European Commission has also concluded that the merger will not raise any competition concerns. This is because the joint venture has very few activities in the European Economic Area and the companies have a limited combined market share.
Reliance to hold controlling stake in new entity
Reliance's Viacom18 and Disney's Star India merger is expected to be completed in the coming days. Post-merger, Viacom18 will transfer its assets to Star India, which will be the operational entity. Reliance will hold a controlling 56% stake in the new entity, while Walt Disney will own 37%. The remaining 7% will be held by Uday Shankar and James Murdoch's Bodhi Tree Systems. Nita Ambani is set to serve as chairperson with Shankar as vice chairperson of the merged company.
Merged entity to retain Disney+ Hotstar
The merged entity will have more than 100 TV channels and two streaming platforms. As part of its future strategy, the company intends to keep Disney+ Hotstar. The platform is expected to stream the Indian Premier League (IPL) in 2025, further expanding its reach in the entertainment and sports sector.
