The Mumbai bench of the National Company Law Tribunal (NCLT) has scheduled the final hearing for the merger of Walt Disney-owned Star India with Reliance Industries-owned Viacom18 on August 1. This decision follows the tribunal’s order dated July 11, which mandates both parties to issue a fresh notice of the final hearing to relevant authorities, including central and state governments, tax authorities, and regulatory bodies such as the Competition Commission of India (CCI) and the Ministry of Information and Broadcasting.
If these authorities do not respond within 30 days of receiving the notice, it will be assumed that they do not object to the merger’s scheme of arrangement, as per the tribunal’s directive.
Earlier this year, Reliance Industries, Viacom18, and Disney finalized a deal to create a joint venture (JV) that combines the operations of Viacom18 and Star India Private Limited. The JV, valued at $8.5 billion on a post-money basis, will be controlled by Reliance Industries, which will hold a 16.34% stake. Viacom18 and Disney will own 46.82% and 36.84% of the venture, respectively. Reliance plans to invest INR 11,500 crore into the JV. This new entity will manage not only Reliance and Viacom18’s sports content but also gain exclusive rights to distribute Disney’s content in India.
The merger, expected to establish a significant presence with a user base of 750 million in India, still requires approval from the Competition Commission of India (CCI). Recently, the CCI has intensified its scrutiny of the $8.5 billion deal, posing nearly 100 questions regarding sports rights and market dynamics, including why platforms like YouTube, which primarily offers free user-generated content, should be considered in the same market as subscription streaming services like Netflix and Disney.
The outcome of the NCLT hearing on August 1 will be a crucial step in determining the future of this high-profile merger.
