The Reliance-Disney deal will create India’s largest entertainment company with 120 TV channels and two streaming services.

Reliance Industries and Walt Disney Co have sought antitrust approval for their $8.5 billion Indian media merger, arguing that their combined strength, particularly in cricket broadcasting, would not hurt advertisers, two people familiar with the matter told Reuters.

The deal, announced in February, is expected to face intense scrutiny from experts because it will create India’s biggest entertainment company with 120 TV channels and two streaming services, as well as the lucrative rights to cricket, India’s top sport.

Reliance and Disney have told the Competition Commission of India (CCI) that the cricket broadcasting rights were awarded separately through a competitive bidding process, said two sources, who asked not to be identified as the approval process is confidential .

The companies argue they will not suffer any damage when the rights expire in 2027 and 2028 because other competitors will be able to bid, according to people familiar with the matter. The CCI will now review the confidential document, a process that typically takes a few weeks but could take longer if the watchdog is not satisfied and seeks more information.

Reliance, Walt Disney and CCI did not immediately respond to requests for comment.

Disney and Reliance currently own the digital and television rights to the Indian Premier League, the world’s most valuable cricket tournament, International Cricket Council matches and Indian Cricket Board matches, which are worth billions of dollars.

This has raised concerns that the combined entity could have far too much influence over advertisers and consumers, with KK Sharma, a former head of mergers at the CCI, saying in March that regulators might be concerned because Disney-Reliance would have “absolute control over cricket” and “very little will be left about cricket”.

Jefferies predicts that Disney-Reliance companies will command a 40% share of the TV and streaming advertising market.

In their filings with the CCI, the companies said there would be no impact on advertisers as consumers who watch cricket can be targeted across many competing platforms where they consume content, including YouTube and Meta, the people said.

Similarly, the companies said Indians consume content across TV channels, social media and streaming apps and that the deal would not put advertisers at a disadvantage.

“The lines (between TV and digital) are blurring. Companies are targeting by demographics. If they don’t like the ad rates offered by Disney-Reliance, they can always target other consumers,” the first source said.

The deal will reshape India’s $28 billion media and entertainment market, pitting the Reliance-Disney combination against Netflix, Amazon Prime, Zee Entertainment and Sony.

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