WEB Reliance, Disney eye sale of channels to appease regulatory concerns
Acquisition of Zee Entertainment by Sony Pictures Networks India has recently come under the scanner of CCI
Both players are expected to sell underperforming channels as part of a strategy to gain approval from the regulator
In a bid to fast-track approval for the proposed acquisition of Zee Entertainment by Sony Pictures Networks India, the two companies are reportedly exploring the sale of some of their TV channels.
This move comes as the Competition Commission of India (CCI) is scrutinizing the deal, which was announced in December 2021. The CCI has expressed concerns over the combined entity's dominance in the Indian television market.
Sources close to the development said that both Reliance and Disney are considering selling off underperforming channels as part of their strategy to gain approval from the regulator.
Reliance is reportedly considering selling its English news channel, CNN-IBN, and its regional entertainment channel, Big Magic. Disney, on the other hand, is said to be exploring the sale of its Hindi general entertainment channel, Star Plus.
The sale of these channels could help to reduce the combined entity's market share and address the CCI's competition concerns.
The CCI is expected to make a decision on the Sony-Zee merger by the end of this month.
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