Reliance, Disney begin antitrust due diligence for merger
Business tycoon Mukesh Ambani's Reliance Industries and Walt Disney are making headway in their proposed merger to create an entertainment powerhouse in India. Reliance has appointed Indian law firm Khaitan & Co and Shardul Amarchand Mangaldas, while Disney has enlisted AZB & Partners, to conduct antitrust due diligence, according to insiders cited by Reuters. The merger would combine their streaming services and 120 television channels, significantly expanding their presence in the Indian media and entertainment sector.
Non-binding term sheet signed in London
In late December, senior Disney executives from Burbank and top Reliance officials from Mumbai met in London to sign a non-binding term sheet for the deal, as reported by Reuters. However, the potential merger is expected to face antitrust challenges and intense scrutiny. To alleviate concerns about their combined market power, the companies may need to divest some assets, such as TV channels.
Antitrust review focuses on streaming businesses and cricket advertising
The antitrust review process is in its early stages, with three sources confirming that the focus will be on the streaming businesses and their control over advertising during cricket matches. Disney's Hotstar app holds the rights for the International Cricket Council's matches in India until 2027, while Reliance's JioCinema app has the rights for the Indian Premier League (IPL). During preliminary discussions, disagreements have arisen over whether Disney or Reliance's entertainment unit holds a higher valuation.
