Viacom18 and Star India Aim to Finalize Merger by October

Reliance Industries’ Viacom18 and Disney’s Star India are aiming to complete their merger by October. This timeline aligns with when the Competition Commission of India (CCI) is expected to give its approval, according to sources.

The National Company Law Tribunal (NCLT) is set to give a final decision on the merger. Announced on February 28, the merger has already received approval from creditors and shareholders.

Key Points:

• The biggest hurdle is the CCI’s approval. Once obtained, the merger will be nearly complete. CCI’s decision is anticipated in October.
• As part of its review, CCI is consulting with other broadcasters, streaming platforms, TV distributors, and advertisers.
• Both Star and Viacom18 have submitted arguments to the CCI, asserting that their merger won’t harm the competition in the media and entertainment (M&E) industry due to existing market competition.

Industry Impact:

• Media analysts believe that Sony, Zee, Sun, Netflix, Prime Video, and YouTube will still provide significant competition to the merged entity.
• Zee Entertainment CEO Punit Goenka mentioned that their ability to compete won’t be affected by the merger.

Financials and Market Position:

• The combined revenue of Star and Viacom18 was approximately Rs 25,000 crore in FY23, surpassing the nearest competitors in both TV and streaming segments.
• The merger will create the largest player in sports broadcasting, with rights to major events like the Indian Premier League and International Cricket Council tournaments.

Regulatory Considerations:

• In a previous merger case between Sony and Zee, the CCI required the sale of three channels to avoid market dominance.
• Experts suggest the CCI might ask Star-Viacom18 to sell some assets to prevent excessive market control.

The merger’s completion hinges on the CCI’s approval, which is expected by October, after a thorough industry impact assessment.