Viacom18, Sony frontrunners in ACC media rights bid; auction on Nov 20

Viacom18 and Sony Pictures Networks India lead the race for the Asian Cricket Council media rights, while Zee Entertainment denies involvement, citing a focus on cost management

Reliance Industries’ Viacom18 and Sony Pictures Networks India (SPNI), also known as Culver Max Entertainment, have emerged as the leading candidates in the bid for the upcoming Asian Cricket Council (ACC) media rights, according to a report by The Economic Times.

While Zee Entertainment’s name has circulated as a potential bidder, company officials have denied any such plans, emphasising that their current focus is on cost management and enhancing profitability, the report said.

Originally scheduled for October 30, the media rights e-auction has been postponed to November 20, the report said. However, with Maharashtra Assembly elections also slated for the same day, there is uncertainty about whether the auction will proceed as planned, the report further said..

Consolidation in the media sector

The bidding comes as the media industry undergoes a phase of consolidation. Viacom18 is set to merge with Star India, creating a media giant valued at over Rs 70,000 crore. On the other hand, the proposed Sony-Zee merger was called off due to unresolved issues.

The combined Star-Viacom18 entity already holds several major cricket broadcasting rights, including for the Indian Premier League, the International Cricket Council, the Board of Control for Cricket in India, Cricket South Africa, and Cricket Australia. Securing the ACC media rights would further solidify their dominance in the cricket broadcasting market.

The merger of Star and Viacom18, currently in its final stages, faced scrutiny from the Competition Commission of India (CCI) over concerns related to the ownership of cricket rights. However, the CCI has conditionally approved the merger.

SPNI’s strategy in the sports broadcasting

For SPNI, winning the ACC rights would help it to enhance its sports portfolio, which currently includes cricket rights for the England and Wales Cricket Board, New Zealand Cricket, and Sri Lanka Cricket.

The report quoted a senior sports media executive as saying that the Asia Cup is a significant media property, particularly due to the rare India-Pakistan matches it offers.

The executive added that while Viacom18 has already invested heavily in multiple cricket properties, Sony may be keen to acquire the ACC rights, though the $170 million base price might be steep for a more cautious company like SPNI.