India‘s National Company Law Tribunal (NCLT) Mumbai Bench has given the green light to the highly anticipated merger between Reliance Industries Limited’s (RIL) media arm and Disney‘s Indian entertainment assets. This approval comes after the Competition Commission of India also gave its nod to the merger earlier in the week.
According to the NCLT order, the merger was approved by the shareholders and creditors of the companies involved, and regulatory bodies such as the ministry of corporate affairs and the income tax department had no objections after clarifications were provided. The NCLT also highlighted that while no prior approval is needed from the ministry of information and broadcasting for the merger scheme itself, the companies will need to seek approval for the transfer of TV channels from RIL’s Viacom18 to Disney’s Star India.
The NCLT deemed the scheme as fair, reasonable, and compliant with the law and public policy. The companies now have 30 days to file the NCLT order with the Registrar of Companies.
During the annual general meeting, RIL chair Mukesh Ambani extended a warm welcome to Disney as part of the Reliance family.
The proposed merger between RIL and key entertainment assets of The Walt Disney Company in India was announced earlier this year. The deal will merge the entertainment businesses of Viacom18 with Star India Private Limited, making SIPL a joint venture held by RIL, Viacom18, and existing TWDC subsidiaries.
The merger will bring together RIL’s media and entertainment portfolio with Viacom18’s TV broadcasting, JioCinema streaming platform, advertising sales, merchandising, and film production and distribution. SIPL will contribute its TV broadcasting arm, content production capabilities, Disney+ Hotstar streaming platform, and advertising business to the combined entity.
The Competition Commission’s approval of the merger is subject to voluntary modifications, although the specific terms of these modifications have not been disclosed yet. Initial concerns were raised regarding the potential dominance of the enlarged group in cricket rights, given the significant role of cricket in India’s sports landscape.
The RIL-Disney deal has already received clearance from the National Company Law Tribunal, allowing for a shareholder meeting to take place where 75% approval is required for the merger to proceed.
This merger is expected to reshape the Indian media industry, creating a major player with 120 TV channels and two streaming services. The combined entity will compete with key players like Sony, Zee Entertainment, Netflix, and Amazon, holding a substantial market share in TV and streaming advertising, which may impact pricing strategies in the industry.
