NEW DELHI : A full-scale antitrust review of plans to create a $10 billion media powerhouse in India by Japan's Sony and Zee Entertainment could force concessions and prolong the process by months at a critical moment for the Indian company.
Shares in Zee fell 6 per cent during trade on Thursday, a day after Reuters reported on CCI's assessment of the merger. Any potential delay, however, comes at a bad time for Zee, a household TV name in India set up in 1992 by Subhash Chandra, dubbed the"Father of Indian Television". The lawyers said Sony and Zee may have to offer a"structural" remedy, which could involve selling some channels, and"behavioural" remedies such as giving commitments that they will not raise prices for advertisers for a certain period.
In CCI's 13-year history, 22 deals had to be modified to gain approval. In 2015, for example, when Indian multiplex giant PVR Ltd sought to acquire a smaller rival's business, the watchdog raised concerns, forcing it to commit to selling some theatres and give assurances not to expand in some regions.
Media companies are not just betting big on TV channels, but also on their video streaming platforms and sports rights.
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