Reliance-Disney merger: App-in-app options being explored for OTT; regional channels to take a hit

On September 28, India’s Ministry of Information and Broadcasting (MIB) approved the transfer of Reliance Industries’ non-news channels to Star India Pvt Ltd. The transfer was part of Viacom 18 Media’s ongoing merger with The Walt Disney Co.'s Indian arm. The following day, on September 29, Antilla—the palatial South Mumbai residence of Reliance’s first family, the Ambanis—was abuzz with India’s Olympians and Paralympians, who were being honoured by Reliance Foundation Chairperson Nita Ambani for their recent achievements in Paris.

The select Viacom 18 executives tasked with producing ‘red carpet interviews’ from the event, though, had just one thing on their minds: What was the status of ‘the’ merger? After all, MIB’s approval had come exactly a month after the Competition Commission of India (CCI), India’s competition watchdog, greenlit the “proposed combination” of Viacom 18 and Star India. The merger would birth the country’s largest media conglomerate, with joint revenues of ~Rs 24,000 crore and a combined valuation of Rs 70,000 crore ($8.5 billion).

But despite most legal clearances for the merger now in place, the operational details of the big-ticket union still remain hazy. Add to that, the “detailed order of the Commission”, which Reliance Industries Chairman Mukesh Ambani alluded to during the company's AGM in late August, has also not arrived. However, key stakeholders with a ringside view of the transition taking place in both companies told The CapTable that “it’s almost done… it’ll be up and rolling by mid-November”.

While a further set of pending clearances from exchanges and shareholders could take another quarter, the merger is expected to close by February 2025. “Lots of things are underway, which will get sorted internally over the next few weeks. But some decisions are still on the fence,” shared the person quoted above.