Zee-Sony merger: Zee proposes closing major entertainment channels to merge with Sony

To secure approval for a $10 billion merger plan, Ze Entertainment Enterprises Ltd and Sony Pictures Networks India offered new concessions, including a proposal to shut down a major entertainment channel.

Zee, in a filing with the Competition Commission of India (CCI) on Friday, proposed to shut down a major entertainment channel, which has a market share of around 20-30% in the entertainment channel segment, according to two sources cited by Livemint. to ease competition concerns. Awareness of development.

“Zee has agreed to close one of its major entertainment channels. Removing the channel business from the scope of consolidation will ensure that the combined entity’s overall market share in certain key regions is reduced. This assures CCI that any Monopoly pricing power is curbed and potential viewership advantages are curbed,” one of the people told Livemint.

The identity of the Zee channel that provided the shutdown is unclear.

The move comes as CCI expresses concern that India’s largest merger, Zee-Sony, could give the company unprecedented pricing power, which could hurt other TV channels in the entertainment broadcasting industry.

According to Livemint, this is the first time Zee and Sony have offered a structural remedy. Before that, company The company submitted a set of “behavioral remedies” to the deal about two weeks ago, which did not include structural changes, the newspaper reported.

“Following a hearing at the CCI on Thursday, Zee and Sony have submitted their ‘remedies’ through their defense of the original merger application filed with the CCI several months ago on Friday (September 30).” One told Live Mint.

Sony and Subhash Chandra’s Zee decided in December to merge their TV channels, movie properties and streaming platforms to create a formidable force in a key growth market of 1.4 billion people that will challenge rivals such as The Walt Disney Co. .

In addition to CCI, these two company Approved by the Securities and Exchange Board of India (Sebi), the Shareholders and the National Company Law Tribunal, Ze Entertainment Merged with Culver Max Entertainment Pvt Ltd (formerly Sony Pictures Networks India).