ZEE Entertainment Enterprises Ltd is reportedly planning to shutdown a “major entertainment channel” as a part of concessions to merge with Sony Pictures Networks.
The plan has been considered to ease competition concerns and secure the Competition Commission of India’s (CCI) approval for their $10 billion merger.
LiveMint reports that the “major entertainment channel” currently has a huge 20-30% market share. Rumours surfacing online indicate that it could be one of the Marathi TV channels ran by ZEEL.
ZEE Entertainment Enterprises Limited (ZEEL) also offered to sell three Hindi TV channels, as per the remedial proposal to the competition authority, in its ongoing merger with Culver Max Entertainment (Sony).
The Competition Commission of India (CCI) said it will sufficiently address the competition-related concerns made in the proposal by ZEEL. The broadcasting giant said it would sell Hindi GEC Big Magic, along with ZEE Classic and ZEE Action.
“The Divestment Business consists of ZEEL’s and/or the Resultant Entity’s (as the case may be) ownership interest in Big Magic which is engaged in the Hindi GEC market segment and Zee Action and Zee Classic which are engaged in the Hindi Films channels market segment,” the CCI order reads.
Furthermore, the CCI order stated that the divestment TV channels will include:
1) license for trade-marks, channel names, and logos for a reasonable period agreed with the approved purchaser.
2) applicable licenses, permits, and authorisations,
3) applicable agreements concerning the licensing of content from the relevant licensor entity(ies)
4) the employees exclusively dedicated and working for these channels.
