Reliance Industries, Walt Disney Progress Merger Plans with Antitrust Check

By siliconindia  |  Friday, 05 January 2024, 15:25 IST

Reliance Industries, Walt Disney Progress Merger Plans with Antitrust Check
Billionaire Mukesh Ambani's Reliance Industries (RELI.NS) and Walt Disney (DIS.N) have taken substantial strides toward their proposed merger within India's media and entertainment sector. Sources familiar with the situation reveal that both entities have initiated antitrust due diligence and enlisted law firms for assistance. Reliance has partnered with Indian law firms Khaitan & Co and Shardul Amarchand Mangaldas, while Disney has engaged AZB & Partners for the merger process. This move indicates notable progress in the collaboration between the two companies, which each possess significant streaming services and a combined offering of 120 television channels.
During a late December meeting held in London, senior executives from Disney's Burbank headquarters and high-ranking officials from Reliance in Mumbai solidified their commitment to the merger by signing a preliminary non-binding agreement. In the event the merger moves forward, it is expected that Ambani's group will possess a majority stake in the combined entity. However, there are substantial expectations that the potential merger could encounter significant antitrust challenges and undergo rigorous scrutiny, potentially necessitating the divestment of assets, particularly television channels, to alleviate concerns about monopolistic market dominance. Sources familiar with the ongoing due diligence process have disclosed that the initial groundwork for the antitrust review has already commenced.
Should the agreement be finalized, it would represent a major transformation within India's television and streaming landscape, aligning with Sony's intent to merge its Indian operations with Zee Entertainment. Disney has encountered challenges in its Indian operations, notably in competing with Reliance, which provides free streaming access to the Indian Premier League (IPL) cricket tournament. Previously, Disney held the digital rights for IPL in India.

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