The amalgamation has been approved subject to the parties fulfilling certain amendments, read a statement from the Competition Commission of India (CCI). While both Sony and zee welcomed CCI Yes, he did not share details about the modifications he would make.
CCI was concerned about the impact of the combined entity on advertising and channel pricing, especially competition in the popular Hindi language segment.
Its initial evaluation had revealed that the combined entity would have 45% of the Hindi language category, attracting the largest audience in India, with rival Walt Dis-Ne Starr being away No. Its sturdy position also enables it. The CCI in its preliminary review stated that in order to enjoy unparalleled bargaining power and, as a result, there may be an increase in the price of advertising and channel packages.
Zee said the CCI has given its nod for merger with Sony Pictures Networks India (now known as Culver Max Entertainment) after evaluating the legal and economic submissions made by the company. “Considering the immense value that the proposed merger would generate for all its stakeholders, it has offered necessary measures as per the guidelines of the regulator. “It didn’t share what the treatments were.
Media reports claimed that the proposed measures include offering merged entity pricing discounts and restructuring its bouquet of channels. The CCI approval moves Sony and Zee closer to the merger, which was announced in September last year. Zee will hold a shareholder meeting on October 14 to seek their approval on the amalgamation.
The proposed deal outline includes the merger of Zee and bangla entertainmentIn an indirect 100% branch of Sony Corporation, Culver Max Entertainment.