Sony-Zee Merger: Companies Ready To Give Concession On Channel Price

Sony-Zee Merger: Companies ready to give concession on channel price to address Competition Commission’s concerns.

Japanese companies Sony Group and Zee Entertainment have offered some more discounts along with giving discounts on the price to address the concerns of the Competition Commission (CCI).

Earlier, CCI had expressed apprehensions that the market would be affected after the merger.

CCI, in a notice, sent on August 3, had said that after the merger of Sony and Zee Entertainment, it will become a company of about $10 billion.

This group will have a huge network of 92 channels, which will become quite powerful in the market.

This is likely to affect the market and this company will come in a position of more bargaining.

Now news agency has quoted two sources as saying that Zee Entertainment and Sony have said to give some concessions.

Sony-Zee Merger: What the company said.

Sony and Zee had said in a letter to the CCI last week that certain steps would be taken to address market concerns.

However, this proposal did not include proposals to mitigate the risks associated with the competition. In this, there was talk of change in the structure of certain channels.

CCI had said that after the deal, the group’s strength in entertainment and advertising will increase significantly.

The company’s dominance, especially in the popular Hindi language segment, will increase significantly, and will be in a position to negotiate to price.

On this, the CCI had spoken of a comprehensive investigation of the deal. Officials say that if it is re-examined, then the deal may be delayed.

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Companies have given two offers.

According to sources, the companies have asked the CCI to take two measures. After the deal, the new company will be ready to offer pricing incentives and discounts to all channel distributors.

This will also include direct-to-home satellite operators. The company has said that after the deal, this discount will be given for a certain time without any discrimination.

CCI may reject the proposal.

Sources related to the matter say that talks will be held between Sony-G and CCI on the proposal given by the companies. In this, the CCI will also have the right to reject the proposal.

This means that if the CCI does not agree with the proposal, then the matter will go to Phase 2 and it will be thoroughly investigated. That is, the possibility of delay in the deal is also increasing.