Sources say Reliance and Disney are seeking India’s antitrust nod to secure cricket rights

Author: Aditya Kalra

NEW DELHI (Reuters) – Reliance Industries and Walt Disney have asked antitrust regulators for approval of an $8.5 billion media merger in India, arguing that their combined power, especially in cricket broadcasting, will not hit advertisers, they said Two people with direct knowledge told Reuters.

Experts expect the deal, announced in February, to face intense scrutiny as it will create India’s largest entertainment player with 120 TV channels and two streaming services. It will also own the lucrative rights to cricket, the most popular sport in India.

Reliance and Disney have informed the Competition Commission of India (CCI) that the cricket rights were acquired separately through a competitive bidding process, said both sources, who declined to be named because the approval process is confidential.

The companies argue that other competitors will not be harmed because they will be able to bid after those rights expire in 2027 and 2028, the sources added.

The CCI will now review the confidential report. Although approval usually takes a few weeks, it may take longer if the regulator is not satisfied and wants more information.

Reliance, Walt Disney and CCI did not immediately respond to requests for comment.

Disney and Reliance currently own billions of dollars of digital and broadcast cricket rights for the world’s most valuable cricket tournament, the Indian Premier League, International Cricket Council and Indian Cricket Board matches.

This has raised concerns that the merged entity could have a major impact on advertisers and consumers, with KK Sharma, former head of mergers at CCI, saying in March that the regulator may be concerned because “almost nothing will be left of cricket ” Disney-Reliance said will have “absolute control over cricket.”

Jefferies estimated that the Disney-Reliance entity will have a 40% advertising market share in the TV and streaming segments.

In their filing, the companies told the CCI that there would be no impact on advertisers as consumers watching cricket could be targeted on multiple competing platforms where they also consume content, including YouTube and Meta, sources said.

The companies also say that Indians consume content across TV channels, social media and streaming apps and advertisers will not be adversely affected by the deal.

“The lines (between TV and digital) are blurring. Companies target their ads based on demographics. If they don’t like the advertising rates at the Disney-Reliance entity, they can always target the consumer” elsewhere, the first source said.

The deal is expected to reshape India’s $28 billion media and entertainment market, where the Reliance-Disney combination will compete with Netflix, Amazon Prime, Zee Entertainment and Sony.

(Reporting by Aditya Kalra; Editing by Jan Harvey)