New Delhi: To allay the concerns of the Competition Commission of India (CCI), broadcasting networks Zee Entertainment Enterprises (ZEE) and Culver Max Entertainment (erstwhile Sony Pictures Networks India) have offered to close TV channels in the relevant markets if needed.
Last month, the (CCI), in an initial review, had discovered that the proposed merger of Sony Pictures Networks India (SPN) and homegrown media network Zee Entertainment Enterprises (ZEE) will hurt competition by having “unparalleled bargaining power”.
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Now, as both the broadcasters are committed to the merger, they are ready to sacrifice a few channels in select markets, two people with direct knowledge of the matter told Economic Times. “Both ZEE and Sony have offered concessions to the CCI,” said one of them said.
“There are a few markets, including Hindi entertainment and a few regional ones, where their combined share will be more than the 40 per cent threshold. Last week they offered remedies, which included shutting down channel(s) to ensure there is no unfair dominance in one market,” the person said.
For both ZEE and Sony, the merger is more important than keeping or letting go of one or two channels, another person cited above noted.
Zee and Sony in December last year agreed to merge their businesses to create a $2 billion media powerhouse. Both the companies own three flagship Hindi general entertainment channels – Zee TV, Sony Entertainment Television (SET) and Sony SAB. In the same category, Zee and Sony also own &TV, Sony Pal, and Zee Anmol.
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In the Hindi movies department, they are the owners of Zee Cinema, Sony Max, &Pictures, Sony Max 2, Sony Wah, Zee Anmol Cinema, Zee Action, Zee Classic, and Zee Bollywood.
Meanwhile, late in July, both the companies had received the nod from the bourses. The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) approved the proposed merger between ZEE and SPN on which ZEE said that this marks a “firm and positive step” in the overall merger approval process and permits the company to proceed with the next steps in the overall merger process.
