The CCI said in its order that the seven channels, which are operated by Reliance Industries’s, will be divested along with licenses for trademarks, channel names and logos for a reasonable period agreed by the approved purchasers
Competition Commission of India (CCI) approved the merger of media assets of billionaire Mukesh Ambani-led Reliance Industries and Walt Disney. The regulator, in a detailed order published on October 22, laid out various conditions that the parties have to adhere to, including selling off seven TV channels like Hungama, Colors Marathi and Star Jalsa. The order also mentioned that the parties will not bundle TV ad slots for IPL, ICC, and BCCI cricketing rights until the end of existing rights.
“The parties will not bundle OTT ad slot sales for all three cricketing rights available with the parties, i.e. IPL, ICC and BCCI for the balance tenure of the existing rights,” said CCI in the order.
The seven channels that are operated by Reliance Industries’s media venture Viacom18 will be divested along with licenses for trademarks, channel names and logos for a reasonable period agreed by the approved purchasers. The regulator in its 48-page order also included a caveat that for five years, starting from the date of divestment of the seven channels, the parties must not acquire any stake and avoid any influence over the channels. Additionally, to ensure that the divestment meets all the conditions, CCI will appoint an independent agency.
The announcement of the Nita Ambani-chaired merger worth $8.5 billion came in February this year when Reliance Industries signed a binding agreement with Disney to merge their media operations in India. The merger of two will make the entity India’s biggest entertainment company.
However, after the announcement, the anti-trust watchdog flagged concerns regarding the impact of the merger on the broadcasting competition in India. However, in August, after modifications were made to the original deal, the CCI approved the merger to create the country’s largest media empire worth over Rs 70,000 crore.
Following CCI’s nod, the union ministry of information and broadcasting approved the merger. Additionally, the ministry also agreed for the transfer of licenses relating to non-news and current affairs TV channels.
“It is hereby informed that the Ministry of Information and Broadcasting (I&B) ... has granted its approval for the transfer of licenses relating to non-news and current affairs TV channels held by Viacom18 Media in favour of Star India subject to conditions laid by CCI,” said Reliance Industries in a statement to the stock exchanges.