Reliance Industries, spearheaded by billionaire Mukesh Ambani, has submitted a request to the Competition Commission of India (CCI) for approval regarding the fusion of Viacom18 and Star India Pvt Ltd (SIPL), amounting to a staggering USD 8.5 billion.

The intended merger seeks to amalgamate the entertainment divisions, alongside select other identified sectors, of Viacom18, a subsidiary of Reliance Industries Ltd (RIL) group, and SIPL, which is wholly owned by The Walt Disney Company (TWDC).

In the documentation filed with the CCI on Friday, it was specified that following the transaction, SIPL, currently under the complete ownership of TWDC through its subsidiaries, will transition into a joint venture (JV), co-owned by RIL, Viacom18, and existing TWDC subsidiaries.

As per the submission, RIL asserted that the proposed merger would not result in any significant adverse impact on competition within India. Nevertheless, to aid the CCI’s evaluation process, they have highlighted various key sectors where horizontal overlaps hold significance, including the licensing of audio-visual content rights, the distribution of broadcast TV channels, the provision of audio-visual (AV) content, and the supply of advertising space in India.

SIPL is actively involved in a spectrum of media activities, encompassing TV broadcasting, film production, and the operation of an OTT platform. It presently operates as a wholly-owned subsidiary of TWDC.

Meanwhile, Viacom18 is primarily engaged in broadcasting television (TV) channels, operating an over-the-top (OTT) platform both in India and globally, and also partakes in film production and distribution.

Earlier this year, the global media powerhouse Walt Disney Co. and Reliance Industries disclosed the signing of definitive agreements to merge their media ventures in India, paving the way for the creation of a mammoth entity worth Rs 70,000 crore (USD 8.5 billion).

Upon the successful finalization of the merger, the resultant entity would emerge as the largest entity in the Indian media and entertainment domain, boasting over 100 channels in various languages, two prominent OTT platforms, and a viewer base exceeding 750 million across the nation.

Nita Ambani, spouse of Reliance Industries’ Chairman Mukesh Ambani, is slated to preside over the joint venture, with Uday Shankar serving as the Vice Chairperson. Reliance and its affiliates are poised to possess a 63.16 percent stake in the merged entity, while Disney will retain the remaining 36.84 percent ownership. Additionally, Reliance has committed to injecting approximately Rs 11,500 crore into the joint venture to nurture the growth of the OTT business.