Mukesh Ambani is not only Asia’s richest person but also among the few billionaires in the world, who runs a multi-billion-dollar business empire. It is no exaggeration to say that there is not a single business sector he has not touched upon. His business ventures have encompassed virtually all sectors and cut across the globe. Although he has established himself as one of the leading authorities in telecom, Mukesh Ambani is also one of the bigwigs in the entertainment industry, having ownership of the Jio OTT platform and some TV channels. Recently, says the rumor mill, Mukesh Ambani is planning to take a massive step in wanting to switch off some of his TV channels. Below are the details:
In this background, the Competition Commission of India is currently reviewing the merger process of two major companies that operate in the Indian television industry: Star India and Viacom 18. The second combined one might have a market share that can go beyond 40%. As a result, the CCI is very cautiously examining the proposal for merger. The CCI is strict with any company holding above 40% in the market in India. There is a very good possibility that the merged entity would pass this percentage, and hence the CCI has come paving its way.
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Market speculation is one of the major tasks that the CCI does. Ever since the CCI has been keeping an eye on the Star India-Viacom 18 merger, both the channels have come to a vital decision. Star India and Viacom 18 have also made CCI aware of their decision to close down some of the Hindi and regional language channels. “It may, therefore, take until October for the entire process to be completed,” he said. Market experts warn that while it is not so straightforward, the merger will have a huge bearing on the competitive dynamics of the television business. It will also reach out to the rest of the media companies for their inputs as well.
As per the proposed shareholding pattern in the merged entity, Reliance shall maintain a 56% stake and Disney will have a 37% stake. The merged new company, through the merger of Viacom 18 and Star India, will own over 110 TV channels and two streaming apps – Disney+ Hotstar and Jio Cinema. The Vice Chairman will be Uday Shankar, executive chairman of Star India Limited. The Chairperson will be Nita Ambani, wife of Reliance founder Mukesh Ambani. Market sources and analysts have commented that this is in all likelihood a signal for a new dawn which will rise for the Indian television industry.
