Disney-Reliance offer concessions on India merger, but no sale of cricket rights – News

Published: Thu Aug 22, 2024, 16:53

Disney and Reliance have offered some concessions to win approval from India’s antitrust regulator for their $8.5 billion media merger, but they are not willing to sell the rights to broadcast cricket matches, the biggest benefit in the deal, two sources familiar with the matter said.

Reuters reported earlier this week that the Competition Commission of India (CCI) had sent a warning to the companies, expressing concerns that the combined entity would have tight control over most of the rights to broadcast cricket matches on television and streaming services in India, which could hurt advertisers.

In response, the companies offered not to increase advertising rates without justification, the sources said.

Reliance-Disney aims to create India’s largest entertainment player, competing with Sony, Netflix and Amazon, with 120 TV channels and two streaming services. But cricket, which has a loyal fan base in the country, is the jewel in the crown.

Many antitrust experts have said one way to overcome the antitrust hurdle is to sell cricket rights, perhaps for tournaments or television broadcasts. But Disney and Reliance have filed a new private filing with the CCI saying they are not willing to do that, said two sources, who asked not to be identified because the process is confidential.

The filings are being made for the first time. Reliance, Disney and CCI did not immediately respond to Reuters queries.