The $8.5 billion merger between Disney and Reliance, considered one of the biggest deals in India’s entertainment sector, is facing a review by the Competition Commission of India (CCI). CCI had previously expressed concerns about issues like cricket broadcasting rights.

Now, Reliance and Disney have agreed to almost all conditions set by the CCI, except for the cricket rights. The CCI must now decide whether to approve the merger.

Advertising Rates Agreement

The new company formed from this merger will compete directly with Sony, Netflix, and Amazon. According to a recent Reuters report, the CCI feared that the merger might reduce competition for cricket broadcasting rights in India. However, Business Standard reports that Reliance and Disney have agreed not to increase advertising rates too quickly. They have assured the CCI that advertising rates will not be set unreasonably high.

Agreement to Close Channels

The merged media company will have around 120 channels and 2 streaming platforms, in addition to cricket broadcasting rights. The companies are willing to shut down around 10 channels as part of the deal. The CCI had suggested that they sell some cricket broadcasting rights, but the companies have not agreed to this. There has been no official statement from CCI, Reliance, or Disney yet. The companies have only said they will not rapidly increase ad rates but are not ready to set a price cap.

Free Cricket Broadcasts

Cricket is the most popular sport in India. The companies have spent about $9.5 billion on cricket broadcasting rights. They had hoped that people would buy subscriptions while watching free cricket broadcasts. Jefferies recently said that the merged company would hold about 40% of the TV and streaming ad market share. The CCI will now analyze the companies’ responses and might conduct further investigations to address its concerns.