Categories: Business

Zee-Sony merger: Groups agree to sell 3 Hindi channels to address anti-competition concerns

Sony and Zee media groups have voluntarily agreed to sell their three Hindi Channels- Big Magic, Zee Action, and Zee Classic to address possible anti-competition concerns arising out of their proposed mega-merger deal. Sony and Zee have submitted their proposals to the Competition Commission of India (CCI). They have issued a 58-page long detailed order which informs that the two groups have agreed to divest Big Magic, which is a Hindi general entertainment channel, as well as Zee Action and Zee Classic.

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Sony-Zee merged three Hindi Channels- Key Points

The two media groups, Sony and Zee, have voluntarily agreed to the modification to the proposed deals after CCI’s prima-facie opinion.
Deals beyond a certain threshold compulsory require the approval of CCI, which seeks to ensure fair competition in the marketplace.
CCI cleared the proposed Sony-Zee merger deal, which was announced in September.
The regulator has also mandated various requirements to be fulfilled by the purchaser concerned before buying the three channels.
One condition is that the purchaser should not be “Star India Private Limited or Viacom18 Media Private Limited”.
The purchaser should be independent of and with no connections to whatsoever with the resultant entity and its affiliates.
It should not be either a past or present employee or director as per the order.