Media groups Sony and Zee have voluntarily agreed to sell three Hindi channels — Big Magic, Zee Action and Zee Classic — to address possible anti-competition concerns arising out of their proposed mega-merger deal. They submitted their proposal to the Competition Commission of India (CCI), which cleared the deal, subject to certain modifications on October 4.
More than three weeks after giving its nod for the transaction, the regulator on Wednesday made public its detailed 58-page order.
The two groups have agreed to divest Big Magic, which is a Hindi general entertainment channel, as well as Zee Action and Zee Classic, which are Hindi film channels, according to the order.
They voluntarily agreed to the modification to the proposed deal after CCI's prima-facie opinion that the deal was likely to cause an appreciable adverse effect on competition.
When contacted, a Zee Entertainment Enterprises Limited (ZEEL) spokesperson declined to comment. There was no immediate comment from Sony. The channels have to be divested within a stipulated time or the "first divesture period". However, CCI has not disclosed the period in the version of the order that has been made public.
