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CCI grants approval on Sony-Zee merger over certain modifications

CCI grants approval on Sony-Zee merger over certain modifications
CCI grants approval on Sony-Zee merger over certain modifications

The merger of Zee Entertainment Enterprises Ltd. with Sony Pictures Networks India Pvt. Ltd. and Bangla Entertainment Pvt. Ltd., which are both subsidiaries of the Sony Group Corporation, was reportedly approved by the Competition Commission of India (CCI) on Tuesday i.e., 4th October 2022.

The CCI accepted the modifications that the companies had suggested to the deal that had been announced in December 2021. For those unaware, the deal involves the merger of Sony Group companies Culver Max Entertainment Pvt. Ltd. and Zee and Bangla Entertainment Pvt. Ltd., both of which were involved in purchasing film and other content rights.

According to CCI, Culver Max Entertainment offers movie, sports, and childrens channels in India and other countries. According to the antitrust regulator, it has over 700 million viewers in India.

The competition watchdog stated that the USD10 billion deal was in the nature of an acquisition and amalgamation covered by CCIs merger regulation threshold without mentioning the deal size. Sony Pictures Networks India (SPN), which was represented by Shardul Amarchand Mangaldas & Co., said in a statement that its name has been changed to Culver Max Entertainment Pvt. Ltd.

According to a statement from SPN, the combined firm would offer remarkable value to Indian customers and eventually take the lead in guiding them away from traditional pay TV and toward the digital future.

Zee will exclude a significant general entertainment channel from the purchase as part of the revision to the agreement that the CCI accepted.

The action aims to allay CCIs concerns that Zee-Sony would gain unprecedented pricing power as a result of Indias largest media merger, which could harm the prospects of rival TV channels in the entertainment broadcasting sector.

However, the company has provided the required remedies in accordance with the regulators rules, taking into account the enormous benefit that the proposed merger will create for all of its stakeholders.

 

Source Credit: https://www.livemint.com/companies/news/zeesony-merger-wins-cci-approval-with-modifications-11664906869572.html

 

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Aakriti Rao

Aakriti Rao

Aakriti Rao has always had a flair to pen down crisp and quirky content. A qualified English Literature graduate, Aakriti’s forte lies in creating content for varied genres in an utmost interactive way. Presently, she works as a content developer and writes articles spanning the latest business trends, market research, and industry news for Cue Report.