The Competition Commission of India (CCI) early last week gave the thumbs up to the mega-merger deal between the two media groups.
Why it matters: The combined entity will own over 70 TV channels, 2 video streaming services (Zee5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India), making it the largest entertainment network in India.
Last year: The proposed merger was announced last year in September. And it took 5 months for the CCI to finally approve the merger.
Deals beyond certain thresholds require the approval of the CCI, which keeps a tab on unfair business practices and also promotes fair competition in the marketplace.
$ZEEL, in Septemb
er 2021, said it has entered into a non-binding term sheet with SPNI to bring together its linear networks, digital assets, production operations, and program libraries.
Back story: After the competition commission suspected a possible adverse effect on competition, the commission issued show cause notices to all involved parties and asked for voluntary remedies.
Following this, the Commission gave their okay to the merger last Tuesday.
What will happens: After the closing, Sony Pictures Entertainment (SPE) will indirectly hold a majority of 50.86% of the combined company, the promoters of ZEEL will hold 3.99%, and the other ZEEL shareholders will hold a 45.15% stake.
After the deal, the combined entity had a market share of 27%
In terms of revenue, Zee-Sony combined made Rs 13,452 crore in FY21
Catch up quick: Creating the new biggest media group, the merger between Sony and ZEE studios gets its merger approval from the Competition Commissioner of India-the keeper of fair competition and anti-monopolistic activities in the market.
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