Zee, Sony to sell 3 Hindi channels to allay CCI's anti-competition concerns
The networks have reportedly decided to divest Big Magic, a GEC along with Zee Action and Zee Classic, which are film channels
Ahead of their proposed merger, Zee and Sony have decided to sell three Hindi channels -- Big Magic, Zee Action and Zee Classic -- to address anti-competition concerns that may stymie the deal between the two networks.
They submitted their proposal to the Competitive Commission of India (CCI), which gave a nod to their deal under the condition of certain modifications on October 4.
More than three weeks after the approval, CCI released its 58-page order.
To address the anti-competition concerns, the networks have agreed to sell off its Hindi channels -- Big Magic, a GEC along with Zee Action and Zee Classic, which are film channels. According to reports, the decision was voluntary after CCI pointed out that the merger may impact competition adversely.
CCI approval is mandatory for network deals beyond a certain threshold to ensure a level-playing field for all the players in the market.
After a five-month-long wait, the Competition Commission of India (CCI) finally gave its approval to the merger deal between Zee Entertainment Enterprises Limited (ZEEL) and Culver Max Entertainment (Sony) with certain modifications on October 4, 2022.
The two companies reportedly offered to shut down some channels in genres where they are in a dominant position. The offer was offered as a remedy by Zee-Sony to allay CCI's concerns over the domination of the merged entity in certain markets.
"Commission approves amalgamation of Zee Entertainment Enterprises Limited (ZEE) and Bangla Entertainment Private Limited (BEPL) with Culver Max Entertainment Private Limited (CME), with certain modifications," CCI said in a tweet.
