ZEE, Sony willing to shut some TV channels for merger: Report

The CCI had earlier expressed concerns that the merged entity would allow them to enjoy 'un-paralleled bargaining power'

Zee Entertainment Enterprises (ZEE) and Sony Group have assured the antitrust regulator Competition Commission of India (CCI) that they will shut down TV channels in the relevant markets if needed for their merger, according to a report by The Economic Times quoting sources.

The anti-trust regulator had earlier expressed concerns that the ZEE-Sony merged entity with a “humongous market position” would allow them to enjoy “un-paralleled bargaining power”.

There are a few markets, including Hindi entertainment and a few regional ones, where their combined share after the merger will be more than the 40 per cent threshold.

“Both ZEE and Sony have offered concessions to the CCI,” a source told the publication. “Last week they offered remedies, which included shutting down channel(s) to ensure there is no unfair dominance in one market,” the person said.

Among major Hindi entertainment channels, ZEE and Culver Max—which trades as Sony Pictures Networks India in the country—own Zee TV, Sony Entertainment Television, Sony SAB, &TV, Sony Pal, and Zee Anmol.

Also Read — Sony, Zee offer concessions to ease Competition Commission's worry over merger

Hindi movies channels such as Zee Cinema, Sony Max, &Pictures, Sony Max 2, Sony Wah, Zee Anmol Cinema, Zee Action, Zee Classic, and Zee Bollywood are also part of the two entities.

The source told the publication that, for both ZEE and Sony, the merger is “more important than keeping or letting go of one or two channels”.

ZEE and Sony had signed the final terms of merger last year on December 22. The proposed merger will see ZEE merging into the Culver Max entity, after closing, the merged company will be publicly listed in India.

Zee, a household TV name in India, was set up in 1992 by Subhash Chandra, dubbed the ‘Father of Indian Television’. The founders had to dilute their stake in the Indian company to tackle debt in 2019 and the Sony deal was struck amid a 2021 boardroom conflict with an overseas shareholder.

For Sony, the merger will further its ambitions to tap into more audience across digital and TV media, as well as regional language content, in the fast-growing Indian market, where international competitors also include the likes of Netflix and Amazon Prime Video.