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Viacom18- Star India merger gets conditional approval from CCI

ICICIdirect Research 30 Aug 2024 DISCLAIMER

The Competition Commission of India (CCI) has approved the merger between Reliance Industries-promoted Viacom18 and Walt Disney-owned Star India.  The approval is subject to compliance with voluntary modifications to the merger scheme. The conditions are 1) refraining from unreasonably spiking advertising rates for streamed cricket matches; and 2) a pledge not to bundle and sell advertising slots across different cricket tournaments.

With CCI approval in place and the National Company Law Tribunal (NCLT) posting the merger scheme for final hearing, integration between the two companies will begin soon.

RIL will control the merged entity, with a 56% stake. Disney will own 37% of the combined firm, while Bodhi Tree Systems will have the remaining 7% stake. The merged entity will have a valuation of ₹70,352 crore and a dominant presence in both TV and streaming. It will have over 750 million viewers across the platforms. We believe with media reported Ad market share of over ~40% and viewership market share of ~35%, the combined entity will by far lead the TV and OTT space, going ahead both in the GEC and Sports genre. RIL will infuse ₹11,500 crore in the merged entity. 

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