CCI approves Walt Disney, Network18 group firms' deal

Fair trade regulator CCI today said it has approved a proposed deal between Walt Disney and Network18 group firms, involving combination of their TV channel aggregation business for various distribution platforms.

Giving the green signal, the Competition Commission of India said the transaction is "not likely to have an appreciable adverse effect on competition in India".

The deal would see UTV Global Broadcasting Ltd -- part of Walt Disney group - acquiring 26 per cent stake in IC Media Distribution Services Pvt Ltd, part of Network18 group.

IC Media is a wholly-owned subsidiary of IndiaCast Media Distribution Pvt Ltd, which is into the business of aggregation of television channels broadcast by TV18 Broadcast, Viacom18 Media and certain other broadcasters.

According to CCI, TV18 is a subsidiary of Network18 Media and Investments Ltd. Network18 also holds 50 per cent stake in Viacom18.

UTV Global Broadcasting had filed a notice seeking approval for 26 per cent stake buy in IC Media with the Commission on January 24.

"It has been stated in the notice that the Disney Group and the IndiaCast Group shall grant exclusive licence to IC to distribute their television channels.

"It has also been stated in the notice that post- combination, UTV Global Broadcasting and IndiaCast would cease their aggregation business in India as they now propose to carry out the business of providing the service of aggregation in India through IC (Media) by way of the proposed combination," said the order dated February 19.

UTV Global Broadcasting is engaged in the business of aggregation and sub-licensing of pay television channels for its two subsidiaries -- UTV Entertainment Television Ltd and Genex Entertainment Ltd.

UTV Global Broadcasting is an indirect subsidiary of Walt Disney group that broadcasts 9 TV channels in India.

Post combination, "IndiaCast would discontinue its aggregation tie-up with Sun Distribution Services Pvt Ltd and accordingly the market share of channels which would be aggregated by IC would be less than that of IndiaCast", the order said.