TV18, Network 18 shares surge up to 13% on CCI approval of RIL-Disney merger
TV18 Broadcast and Network18 Media and Investments surged up to 13% to their respective day’s high of Rs 54.26 and Rs 106 on BSE after the Competition Commission of India (CCI) approved the merger between Reliance Industries-promoted Viacom18 and Walt Disney-owned Star India.
The shares of TV18 Broadcast rose 13.2% while those of Network18 Media surged 10%.
The approval came three months after they filed for it, paving the way for the creation of the country’s largest media and entertainment firm.
The watchdog on Wednesday said the approval is subject to compliance with voluntary modifications to the merger scheme. A CCI order detailing these modifications will be released soon.
With CCI approval in place and the National Company Law Tribunal (NCLT) posting the merger scheme for final hearing, integration between the two companies will begin soon.
RIL will control the merged entity, with a 56% stake. Disney will own 37% of the combined firm, while Bodhi Tree Systems will have the remaining 7% stake.
The merged entity will have a valuation of Rs 70,352 crore and a dominant presence in both TV and streaming.
“Merged entity will dominate with 40%+ viewership share in linear TV, 50% share in digital and a near monopoly on cricketing rights. Consolidation is positive for the
industry, but negative for smaller players like Zee,” said UBS in its note while commenting on the merger update.
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RIL will infuse Rs 1,500 crore into the merged
