The entertainment industry is all set to witness one of the biggest changes in this October. Viacom18 and Star India aim to complete their merger by October, pending final approval from the Competition Commission of India (CCI). The merger has been approved by creditors and shareholders.
Viacom18 and Star India Set to be Merged:
India is set to witness a major shift in the entertainment sector as Reliance Industries’ Viacom18 and Walt Disney’s Star India plan to merge. They aim to finalize the merger by October, awaiting approval from the Competition Commission of India (CCI). The National Company Law Tribunal (NCLT) has already scheduled the merger for final review.
Announced on February 28, the merger has received approval from the creditors and shareholders of both companies. With this support, permission from the NCLT is anticipated. The CCI’s order will play a crucial role in determining the merger’s impact on the market.
While talking about this, an official said, “The biggest barrier to the merger proposal is the CCI approval. Once the competition watchdog approval comes, the merger deal will be more or less concluded. The expectation internally is that the CCI approval might come in October.”
CCI’s Communication With the Other Companies:
As this is going to be a big merger, the rival companies may face some hurdles. The CCI is investigating how the merger might affect competition. They have begun contacting other broadcasters, streaming platforms, TV distributors, and advertisers to assess the impact.
A source gave an update about this. The source said, “CCI has reached out to us a couple of weeks back to know our views about the Star-Viacom18 merger. Even in the Sony-Zee merger case, CCI reached out to all the key players in the industry.”
Merger Creates Industry Giant:
The merger between Star and Viacom18 will form a major force in the TV and streaming markets. With a huge number of channels covering entertainment and sports and top streaming platforms Disney+ Hotstar and JioCinema, the new entity will dominate both segments.
In 2023, Star and Viacom18 combined had an operating revenue of around Rs 25,000 crore. In comparison, their nearest rivals had a combined revenue of Rs 11,000 crore. This merger will position Star-Viacom18 as the largest player in sports. The key properties will be the Indian Premier League, India’s international cricket matches, and many more.
Legal experts suggest that the CCI might require Star-Viacom18 to sell off certain assets. The merger will create a much larger merger than the Sony-Zee combine, prompting potential regulatory actions to address competition concerns.
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