Reliance, Disney are Set to Sell some Channels to Obtain Antitrust Approval for India's Media Merger

Reliance and Walt Disney have offered to sell some channels in order to get speedier antitrust approval for their $8.5 billion India media assets merger, but they are refusing to shift the cricket broadcast rights they possess, according to two persons familiar with the subject.

Antitrust experts have cautioned that the Reliance-Disney deal, announced in February, may face heavy scrutiny because it will establish India's largest entertainment company, competing with Sony, Zee Entertainment, Netflix, and Amazon with a total of 120 TV channels and two streaming services.

The amalgamated business, which will be majority controlled by Asia's wealthiest man Mukesh Ambani's Reliance, would also hold lucrative cricket broadcasting rights worth billions of dollars, prompting concerns about pricing power and its ability to control sponsors.

After the Competition Commission of India (CCI) privately asked Reliance and Disney about 100 questions about the merger, the companies told the watchdog they are willing to sell some TV channels - fewer than ten - to alleviate concerns about market power and gain early approval, according to sources who spoke on the condition of anonymity.

According to reports, some of the concessions being given are for regional Indian language channels in which the two corporations may have a significant market share.