Zee Entertainment Enterprises Ltd (Zee) and Sony on Thursday made a presentation before the Competition Commission of India (CCI) after the regulator raised some concerns about the proposed merger.
During the discussion, the two companies said they will not abuse their market dominance and not charge a higher fee from advertisers or DTH providers for a fixed period. However, the meeting was reportedly inconclusive with the competition watchdog yet to give the go-ahead for the mega amalgamation.
In August, the CCI had communicated to the companies through a notice that their “humongous market position’’ would allow them to enjoy “unparalleled bargaining power’’.
The CCI was reportedly concerned over the impact the merger would have in terms of advertising and channel pricing, particularly in the Hindi language segment. Shares of Zee ended 2.30 per cent lower at Rs 251.05 on the BSE.
Recently, the National Company Law Tribunal directed the company to convene a meeting of its shareholders to get approval for the proposed merger with Culver Max Entertainment, formerly Sony Pictures Network.
Passing an order, the Mumbai bench of the NCLT had on August 24 directed to call a meeting of the equity shareholders of Zee Entertainment to consider the merger.
“The NCLT Mumbai bench has directed that a meeting of the equity shareholders of Zee be convened on Friday, October 14 for the purpose of considering the proposed merger with Culver Max Entertainment,” the company said.
