Competition Commission of India: The big deal of $8.5 billion between Reliance Industries and Walt Disney seems to be falling apart. The Competition Commission of India (CCI) has raised questions on this deal. CCI believes that the merger of Disney Hotstar and JioCinema will not leave competition in the market. CCI has conveyed its opinion to both the companies.
There will be no competition for cricket broadcast rights
Citing sources, Reuters claimed in its report on Tuesday that the initial assessment of the Competition Commission of India has found that this merger will not eliminate competition for cricket broadcast rights. Cricket broadcasting has been considered the biggest issue by the CCI. However, Reliance, Disney and the CCI have refused to say anything about this at the moment.
After the merger, the ownership of the company remains with Mukesh Ambani
The ownership of the company formed after the merger will go to Reliance owned by Mukesh Ambani. Due to this, there will be no one left to challenge them for the rights of cricket broadcasting worth billions of dollars. Reliance will decide the prices according to its own will and will also have control over the advertising rates. This merger was announced in February. Experts had earlier also expressed concern about this deal.
There was a plan to merge Disney Hotstar with Jio Cinema
After the merger, the country’s largest entertainment company was going to be born. Only Sony, Zee Entertainment, Netflix and Amazon Prime would have been left in its competition. Just a day ago, media reports claimed that Reliance has planned to merge Disney Hotstar with Jio Cinema. They do not want to run two streaming apps. However, now if CCI takes this decision then all the plans of the company may go awry.
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