Reliance, Disney begin antitrust due diligence ahead of merger

Reliance and Disney have hired high-profile law firms to navigate the antitrust hurdles ahead of the mega-merger, according to a Reuters report.
This potential entertainment behemoth, wielding streaming giants and 120 TV channels, could reshape India's media landscape. Whispers of a London summit and secret term sheets fuel speculation, but both companies remain mum. Analysts are keenly watching if both the companies can outfox regulators and create an entertainment giant.
Antitrust challenges are expected for any potential merger between Reliance and Disney, with assets such as TV channels likely to be divested to address concerns about their combined market power.
Antitrust scrutiny for a Disney-Reliance merger would focus on their streaming businesses and their influence over advertising during cricket events, according to antitrust experts cited by Reuters. Disney's Hotstar app holds the rights for International Cricket Council matches in India until 2027, while Reliance's JioCinema app has the rights for IPL.
Preliminary discussions revealed disagreements among company executives regarding the valuation of Disney's entertainment unit compared to Reliance's.