CCI Approves Merger of RIL’s Media Assets with Walt Disney

Current Context: On 28th August 2024, The Competition Commission of India (CCI) approved the merger of Reliance Industries Limited’s (RIL) media assets with those of Walt Disney Co.

• This merger, valued at approximately $8.5 billion, will create India’s largest entertainment company.
• Under the deal, RIL and its affiliates will hold a 63.16% stake in the combined entity, while Walt Disney will hold the remaining 36.84%.
• The new entity will house two streaming services and 120 television channels, combining substantial television channels, sports rights, and vast streaming content libraries from both Disney Star and Reliance’s Viacom18 and JioCinema.
• This merger positions the new entity to rival major players like Netflix, Sony, and Amazon in the Indian market.

Question:

1 What percentage stake will Reliance Industries Limited (RIL) and its affiliates hold in the new entity formed after the merger of RIL's media assets with Walt Disney Co.?

• A) 50%
• B) 36.84%
• C) 63.16%
• D) 75%

Answer: C) RIL and its affiliates will hold a 63.16% stake in the new entity after the merger, while Walt Disney Co. will hold the remaining 36.84%.