ZEEL

May 8 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• ZEE ENTERTAINMENT - TARGETS 8-10% AD REVENUE GROWTH IN FY26

• ZEE ENTERTAINMENT - TARGETS ABOUT 17.5% TV VIEWERSHIP SHARE IN FY26

Source text: ID:nNSEyy0jF

Further company coverage: ZEE.NS

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May 1 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• ZEE ENTERTAINMENT ENTERPRISES LTD - APPROVES INCORPORATION OF THREE WHOLLY OWNED SUBSIDIARIES

• ZEE ENTERTAINMENT - OBJECTIVE TO DIVERSIFY CURRENT BUSINESS, TO BECOME MORE EFFICIENT

Source text: ID:nBSE6gj3g

Further company coverage: ZEE.NS

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April 7 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• NCLAT DISMISSES APPEAL FILED BY IDBI BANK

Source text: ID:nBSE2jPdFg

Further company coverage: ZEE.NS

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By Aditya Kalra

NEW DELHI, March 21 (Reuters) - India's antitrust raids this week on media buying agencies followed tip-offs under a leniency scheme that reduces penalties for companies providing evidence, three people familiar with the matter told Reuters.

Japan's Dentsu 4324.T was at least one firm that has applied for the scheme, one of the people said. Dentsu declined to comment.

On Tuesday and Wednesday, the Competition Commission of India raided the local offices of WPP-owned GroupM, Interpublic, Publicis and Dentsu, as well as high-profile Indian broadcasters' body IBDF, over suspected collusion on ad prices and discounts.

The three sources said the CCI investigation was linked to the watchdog's leniency programme, which allows a 100% penalty waiver for the first company coming forward with evidence of wrongdoing, and lower waivers for subsequent ones, once the case concludes.

One of the sources with direct knowledge of the matter said Dentsu made a leniency submission around February last year and disclosed evidence related to pricing arrangements between industry body the Advertising Agencies Association of India and the IBDF, which dictated terms on discounting to win ad clients.

"If media agencies wanted to do business, they had to follow these guidelines," the person added, referring to what they viewed as a potential anti-competitive arrangement.

The CCI did not respond to Reuters queries. The AAAI and IBDF, both of which were raided in the enforcement action this week, also did not respond.

Ad giant GroupM, U.S.-based Interpublic's IPG Mediabrands unit IPG.N, and France's Publicis Groupe PUBP.PA did not reply to requests for comment.

It's not clear if any other company has made similar leniency submissions.

The IBDF represents top domestic broadcasters, including billionaire Mukesh Ambani's Reliance-Disney joint venture, Sony and Zee Entertainment ZEE.NS.

The CCI does not make public details of any price-fixing investigations, and conducts such raids to seize potential evidence. In the latest case, raids ran through Tuesday night for over 24 hours.

India is the world's eighth-biggest ad market where revenues of $18.5 billion last year are set to grow 9.4% in 2025, GroupM estimates.

The investigation, which will drag on for months, comes amid major shifts in India's ad landscape following a $8.5 billion merger between Walt Disney and Reliance's Indian media assets, with the combined business estimated to have a 40% share of the ad market in TV and streaming segments.

If found guilty, the media agencies may be liable to pay a penalty of up to three times their profit for each year during which the collusion took place, or 10% of their turnover for each year of wrongdoing, whichever is higher.

In 2018, Anheuser-Busch InBev (AB InBev) told the CCI about a beer industry cartel, triggering investigations involving Carlsberg and United Breweries. In return, AB InBev got a full penalty waiver in 2021.

(Reporting by Aditya Kalra
Editing by Mark Potter)

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** Zee Entertainment Enterprises ZEE.NS rises ~2.7% to 103 rupees after CLSA predicted stock would double in 12-24 months

** Says media company's valuation at rock bottom at forward 12-month PE of 8x after slump that followed failed Sony merger

** Adds growth in ad rev to drive stock's re-rating

** Estimates ZEE to deliver 33% profit CAGR in FY26 and FY27

** Says OTT streaming service ZEE5's ramp-up to aid recovery

** Adds correction in ZEE's shares "overdone"

** Retains "outperform" and PT of 170 rupees, implying a 65% upside

** Stock rated "hold" on avg; median PT is 133 rupees, per data compiled by LSEG

** YTD, ZEE down 15%

(Reporting by Bharath Rajeswaran in Bengaluru)

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By Aditya Kalra

NEW DELHI, March 19 (Reuters) - India's antitrust officers grilled media executives and seized data in an investigation into price fixing by global advertising agencies GroupM, Interpublic, Publicis and Dentsu, with raids continuing well past midnight into a second day on Wednesday, people familiar with the matter said.

The Competition Commission of India (CCI) raids began early morning on Tuesday at around 10 locations in the strictest enforcement action ever against media agencies and a group of the nation's top broadcasters, just before the start of the popular IPL cricket tournament, the biggest sporting event for advertisers in India.

Top officials at the Indian office of GroupM were not allowed to go home overnight and the raid was still continuing on Wednesday, with evidence from mobile phones being cloned, two people with direct knowledge said.

Raids at Indian offices of U.S.-based Interpublic's IPG Mediabrands unit IPG.N, Japan's Dentsu and top broadcasters industry group IBDF ended early morning on Wednesday, nearly 24 hours after they started, people familiar with the matter said.

At the New Delhi IBDF office raid, CCI inspectors reviewed emails related to advertising dealings of the group, which represents billionaire Mukesh Ambani's Reliance-Disney joint venture and Sony, said the first source.

France's Publicis Groupe PUBP.PA office was also raided on Tuesday and the operation continued well past midnight, though it wasn't clear if it has ended, said another source familiar with the operation.

GroupM, owned by Britain's WPP WPP.L, did not respond to Reuters queries. WPP in 2023 said it had a 45% media market share in India, with 45 of the top 50 advertisers as clients.

Interpublic's IPG Mediabrands unit, Publicis, Dentsu and the IBDF did not respond to Reuters queries. The CCI also did not respond.

The raids come amid major shifts in India's ad landscape following a $8.5 billion merger between Walt Disney and Reliance's India media assets, which is estimated to have a 40% share of the ad market in TV and streaming segments.

The media agencies compete in India, the world's eighth-biggest ad market, where revenues of $18.5 billion last year are set to grow 9.4% in 2025, GroupM estimates.

In a case started last year, the CCI is investigating allegations that broadcasters and media agencies were colluding on prices and discounts of ad rates. The raids were carried out in New Delhi, Mumbai and Gurugram, Reuters has reported.

The watchdog does not provide details of price collusion cases, or make its investigations public, and the case is likely to drag on for months before a conclusion is reached.

If found guilty, the media agencies may be liable to pay a penalty amounting to up to three times their profit for each year during which the collusion took place, or 10% of their turnover for each year of wrongdoing, whichever is higher.

(Reporting by Aditya Kalra; Additional reporting by Munsif Vengattil; Editing by Saad Sayeed)

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Adds bullet points, context and details in paragraphs 6, 9-11

By Aditya Kalra and Munsif Vengattil

NEW DELHI, March 18 (Reuters) - The Indian antitrust body has raided the offices of many global advertising giants, including GroupM, Dentsu and Interpublic Group, and a broadcasters' industry group over alleged price collusion, people with direct knowledge told Reuters on Tuesday.

Officers of the Competition Commission of India searched around 10 locations after it initiated a case against the agencies and top broadcasters over allegedly fixing ad rates and discounts, said one of the sources.

Three other sources with direct knowledge confirmed the names of the entities being raided.

The raids were being carried out in Mumbai, New Delhi and Gurugram, the first source said.

Reuters was first to report the enforcement action and details of the antitrust case involving the media agencies.

The raids come as the ad landscape in India is seeing major shifts following the $8.5 billion merger between Walt Disney and Reliance's India media assets, which Jefferies analysts say will have a 40% share of the ad market in TV and streaming segments.

Spokespersons for ad giant GroupM, owned by Britain's WPP WPP.L, U.S.-based Interpublic's IPG Mediabrands unit, and Japan's Dentsu did not respond to requests for comment.

The Indian Broadcasting and Digital Foundation also did not respond, and neither did the competition commission, which does not make public the details of its enforcement action or cases related to price collusion.

The first source said the CCI was investigating how ad agencies allegedly colluded with certain broadcasters to fix ad prices while selling them to clients, and discussed discounts.

In such surprise raids, CCI officers typically seize documents and record testimonies of company officials. The investigation is likely to then continue for several months, and the process is kept confidential.

In December, the CCI raided some offices of alcohol giants Pernod Ricard PERP.PA and Anheuser-Busch InBev ABI.BR as it investigated accusations of price collusion with retailers in a southern state.

The Indian Broadcasting foundation represents top domestic broadcasters, including billionaire Mukesh Ambani's Reliance-Disney joint venture and Sony and Zee Entertainment ZEE.NS.

Reuters was first to report the enforcement action and details of the antitrust case involving the media agencies.

(Reporting by Aditya Kalra and Munsif Vengattil; Editing by Bernadette Baum)

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** Shares of Zee Entertainment Enterprises ZEE.NS rise 4.7% to 102.78 rupees

** TV broadcasting co's promoters increased stake to 4.28% from 3.99% by acquiring shares from open market

** Nuvama Research said acquisition by promoters shows belief in long-term prospects and growth potential of ZEE, which will boost confidence of minority investors

** Trading vols at 14.7 mln shares, 1.4x the 30-day average

** ZEE down ~15% in 2025

(Reporting by Vijay Malkar)

(([email protected];))

** India's Sun TV Network SUTV.NS drops 7% to 10-month low of 586.55 rupees, biggest percentage loser on media .NIFTYMED index

** Company's Q3 profit slumps 20% Y/Y on lower advertisement revenue and higher operating expenses

** At least four brokerage firms cut PT after weak earnings

** Rival Zee Entertainment's ZEE.NS foray into southern market successful, but Sun TV's northern market foray needs more focus, says Nuvama

** "Sun TV's new Hindi channel dragged down margins," says CLSA; cuts PT to 670 rupees from 766 rupees earlier

** SUTV down 14% so far in 2025 vs 13% losses in media index

** Analysts' average rating on stock "buy"; median PT 790 rupees

(Reporting by Vivek Kumar M)

(([email protected];))

** Shares of Zee Entertainment Enterprises ZEE.NS down 2.5% at 117 rupees

** Broadcaster continues to see weak ad environment, with Q3 ad revenue down 8.5%, declining in nine of last 10 quarters

** Citi says pace of ad rev recovery to determine if Zee hits FY26 core profit margin target of 18%-20%

** Adds first phase of margin expansion via cost cuts is done

** Citi cuts FY25-27E rev estimates by 5% and Nuvama cuts FY25-27E core profit est by 4-11% on sluggish ad environment

** Session's loss extends 12-month stock price decline to about 24%

(Reporting by Ananta Agarwal in Bengaluru)

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Jan 23 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• ZEE ENTERTAINMENT Q3 CONSOL NET PROFIT 1.64 BILLION RUPEES; IBES PROFIT EST. 1.86 BILLION RUPEES

• ZEE ENTERTAINMENT Q3 CONSOL TOTAL INCOME 20.13 BILLION RUPEES

Source text: ID:nBSE2sNVsl

Further company coverage: ZEE.NS

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Jan 3 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• INDIA MARKET REGULATOR: RELEASES ADJUDICATION ORDER IN MATTER OF ZEE ENTERTAINMENT ENTERPRISES

• INDIA'S SEBI : SHOW CAUSE NOTICE OF JULY 2022 TO ZEE, SUBHASH CHANDRA, PUNIT GOENKA STANDS WITHDRAWN, INSTANT PROCEEDINGS ARE DROPPED

• INDIA'S SEBI : ALLEGATIONS OF JULY 2022 SHOW CAUSE NOTICE TO ZEE TO BE SUBSUMED WITH OTHER INVESTIGATION CARRIED AGAINST CO

Source text: [ID:]

Further company coverage: ZEE.NS

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** Zee Entertainment Enterprises ZEE.NS drops ~1%, extending its yearly losses to 56%

** Stock set for worst year since 2008

** Meltdown in stock after Japanese media and entertainment giant Sony 6758.T scrapped $10 bln merger with co on Jan. 22, dragging ZEE 33% lower - its worst day on record

** ZEE also top drag on Nifty media index .NIFTYMED, which is down 24% YTD - worst in five years

(Reporting by Kashish Tandon in Bengaluru)

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Nov 26 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• ZEE ENTERTAINMENT ENTERPRISES - ARBITRAL TRIBUNAL REJECTS CLAIMS BY ZEEL AND MARGO AGAINST RAILTEL

• ZEE ENTERTAINMENT ENTERPRISES LTD - ARBITRAL TRIBUNAL REJECTS COUNTER CLAIMS BY RAILTEL

Further company coverage: ZEE.NS

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By Aditya Kalra and Aleef Jahan C S

Nov 22 (Reuters) - Sony's 6758.T India unit said on Friday it had secured the media rights for all Asian Cricket Council (ACC) tournaments until 2031, which a source with direct knowledge of the matter put the value at $170 million.

Disney DIS.N and Reliance RELI.NS, seen as frontrunners, did not bid for the rights, another source said on condition of anonymity.

The deal comes at a crucial time for the country's media industry, which is going through a consolidation phase after the $8.5 billion merger of Reliance and Walt Disney's India media assets.

Earlier this year, India's antitrust body raised some concerns about the merged entity's grip over the broadcast of the world's most populous country's favourite sport, Reuters had reported.

The entity currently holds the rights to the matches of the Indian Premier League and International Cricket Council.

The media rights of the ACC were with Disney-owned Star India until 2023, before they were temporarily extended, according to media reports.

The newest deal ensures the coverage of Asian cricket's marquee tournaments across television, digital and audio platforms, Sony India said in a statement.

The deal will be a significant boost for Sony to bolster its foothold in India after it pulled out of a $10 billion merger with Zee Entertainment earlier this year.

Disney, Reliance and Sony India did not immediately respond to Reuters' requests for comment.

(Reporting by Aditya Kalra in New Delhi and Aleef Jahan in Bengaluru, writing by Indranil Sarkar; Editing by Shreya Biswas)

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Nov 15 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• APPROVED HIGHER TARGETS TO EVALUATE PERFORMANCE OF PUNIT GOENKA

• HIGHER TARGETS FOR PUNIT GOENKA INCLUDES REVENUE OUTLOOK FOR NEXT 4 QUARTERS

• HIGHER TARGETS INCLUDE PAYOUT OF 25% OF CONSOL NET PROFITS AS DIVIDEND TO SHAREHOLDERS

Source text: ID:nBSE13ZF1K

Further company coverage: ZEE.NS

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Nov 4 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• ZEE ENTERTAINMENT - AIMS TO DELIVER 18-20% EBITDA MARGIN BY Q4 FY26

Source text: ID:nBSE5KHmQp

Further company coverage: ZEE.NS

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Oct 23 (Reuters) - India's New Delhi Television (NDTV) NDTV.NS posted its fourth-straight quarterly loss on Wednesday, as the news broadcaster's expenses surged.

The company, 64.7% of which is owned by ports-to-energy conglomerate Adani Group, reported a loss of 527.7 million rupees ($6.28 million) for the July-September quarter, compared to a profit of 59.1 million rupees in the year-ago period.

NDTV's total expenses surged 76% on the back of a jump in operating as well as production and marketing costs, as it continued to invest in newly launched TV channels and infrastructure.

The company, which runs news channels, said its revenue from operations rose 16.5% to 1.11 billion rupees in the latest quarter, attributing it to enhanced content strategy, an expanding portfolio of intellectual properties, and strategic digital initiatives.

Indian consumer good makers, who typically spend the most on advertising on television, have reined in their expenses as they grapple with muted demand for their products amid rising living costs.

That has weighed on advertising-dependent media companies.

In the past couple of weeks, Zee Enterprises ZEE.NS, which runs its eponymous TV serial and entertainment channels, posted a decline in ad revenue. Reliance group-controlled Network18 Media NEFI.NS, which owns both news and entertainment channels, said its TV news ad revenue was soft during the quarter.

NDTV did not disclose its ad revenue for the quarter.

The company's shares dropped after the results, closing 0.8% lower.

Other rivals TV Today Network TVTO.NS and Zee Media Corporation ZEEN.NS are expected to post results later this month.

($1 = 84.0650 Indian rupees)

(Reporting by Aleef Jahan in Bengaluru; Editing by Janane Venkatraman)

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** Zee Entertainment ZEE.NS jumps 5.3% to 132.3 rupees

** Media giant reports a 240-basis-points rise in Q2 core profit margin to 3.21 bln rupees ($38.2 mln) vs 3.15 bln rupees a year ago

** Re-appoints Punit Goenka as CEO for five years starting Jan. 1, 2025

** ZEE was up 1% ahead of results

** Stock eyes busiest trading day in 11 sessions, over 23 mln shares traded

** ZEE rated "Hold" on avg; median PT is 155 rupees - LSEG

** Stock up ~1% so far this week, snapping two straight weeks of losses

($1 = 84.0400 Indian rupees)

(Reporting by Manvi Pant in Bengaluru)

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Oct 9 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• ZEE ENTERTAINMENT - ADOPTED REPORT PREPARED BY INDEPENDENT INVESTIGATION COMMITTEE

• ZEE ENTERTAINMENT - INDEPENDENT INVESTIGATION COMMITTEE SUBMITS REPORT TO ZEE'S BOARD, FINDS NO MATERIAL IRREGULARITIES

• ZEE ENTERTAINMENT - BOARD ADVISED CO TO PROACTIVELY SETTLE PENDING PROCEEDINGS WITH SEBI IN TIME-BOUND MANNER

• ZEE ENTERTAINMENT - COMMITTEE NOTED TRANSACTIONS UNDER INVESTIGATION DID NOT ADVERSELY AFFECT CO OR SHAREHOLDERS

• ZEE ENTERTAINMENT - COMMITTEE DID NOT FIND ANY NEED FOR FURTHER CORRECTIVE, DISCIPLINARY MEASURES

Source text for Eikon: ID:nBSEbpNgSs

Further company coverage: ZEE.NS

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** Shares of Mukta Arts MUKR.NS jump an exchange-allowed maximum of 20%, set for best day in nearly a year

** Film production co signs deal with Zee Entertainment ZEE.NS for satellite and media rights of 37 films for 6-year period

** Stock sees busiest day since Oct. 2023, vols at 53x the day avg

** ZEE up around 7%

** MUKR is up 27% YTD, while ZEE is down 50%

(Reporting by Nishit Navin)

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Sept 24 (Reuters) - Mukta Arts Ltd MUKR.NS:

• ASSIGNMENT AGREEMENT EXECUTED BETWEEN CO AND ZEE ENTERTAINMENT ENTERPRISES

• AGREEMENT FOR ASSIGNMENT OF SATELLITE, MEDIA RIGHTS OF 37 FILMS OF CO

• AGREEMENT FOR TOTAL CONSIDERATION OF 25% MORE COMPARED TO PREVIOUS AGREEMENT

Source text for Eikon: ID:nBSE5nbhtm

Further company coverage: MUKR.NS

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Sept 18 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• ZEE ENTERTAINMENT - STAR HAS FILED ITS STATEMENT OF CASE BEFORE THE LCIA ARBITRAL TRIBUNAL

• ZEE ENTERTAINMENT - STAR SOUGHT TO DECLARE ALLIANCE AGREEMENT BETWEEN STAR AND CO VALIDLY TERMINATED

• ZEE ENTERTAINMENT - LCIA ARBITRAL TRIBUNAL IS YET TO DETERMINE IF CO IS LIABLE IN ANY MANNER

• ZEE ENTERTAINMENT - REFUTES ALL CLAIMS AND ASSERTIONS MADE BY STAR INCLUDING ITS CLAIMS FOR DAMAGES

• ZEE ENTERTAINMENT - CO WILL STRONGLY CONTEST ALL UNFOUNDED CLAIMS BY STAR AND RESERVES ALL ITS RIGHTS

Source text for Eikon: ID:nBSE6cnydk

Further company coverage: ZEE.NS

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Sept 12 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• UPDATE ON SCHEME OF ARRANGEMENT AMONGST CO, CULVER MAX ENTERTAINMENT, BANGLA ENTERTAINMENT

• NCLT ALLOWING WITHDRAWAL OF SCHEME

• NCLT ALLOWING RECALL SANCTIONED ORDER DATED AUGUST 10, 2023

Source text for Eikon: ID:nBSE4NCdwC

Further company coverage: ZEE.NS

(Reporting by VijayDattaram Malkar)

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Sept 3 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• ZEE ENTERTAINMENT - MINISTRY OF CORPORATE AFFAIRS GRANTED APPROVAL FOR EXTENSION FOR HOLDING AGM

Source text for Eikon: ID:nBSE8RzbWj

Further company coverage: ZEE.NS

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Sept 2 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• ZEE ENTERTAINMENT - SHIVA CHINNASAMY APPOINTED AS CHIEF TECHNOLOGY & PRODUCT OFFICER

Source text for Eikon: ID:nBSE3PpFrd

Further company coverage: ZEE.NS

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Aug 29 (Reuters) - Zee Entertainment Enterprises Ltd ZEE.NS:

• GETS TAX DEMAND ORDER FOR 1.4 MILLION RUPEES

Source text for Eikon: ID:nBSEy9hYr

Further company coverage: ZEE.NS

(Reporting by VijayDattaram Malkar)

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** Shares of Zee Entertainment Enterprises Ltd ZEE.NS down 0.7% at 149.72 rupees

** Emkay maintains "reduce" rating and PT of 150 rupees on ZEE, says settlement with Sony not enough to warrant a rating upgrade

** ZEE closed 11.6% higher on Tuesday after the news

** Lack of major strategic investor in ZEE's recent fund-raise "does not inspire confidence"; new partner or buyer would be key for rating upgrade - Emkay

** Adds, ZEE's growth plans are not helped by a tough business environment and potential competition from a combined Reliance-Disney entity; any unfavourable verdict in its other legal cases "can derail the management's current plans"

** Over 34.4 mln shares traded, 1.9x 30-day avg volume

** Analysts tracking ZEE rate it "hold" on avg; median PT is 157 rupees - LSEG data

** Stock down 46% so far this year

(Reporting by Nandan Mandayam in Bengaluru)

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BENGALURU, Aug 27 (Reuters) - Zee Entertainment Enterprises ZEE.NS along with Sony's 6758.T local unit and Bangla Entertainment (BEPL) have mutually agreed to withdraw all claims against each other, the Indian media giant said on Tuesday.

As part of the settlement, the firms will withdraw all claims made at the Singapore International Arbitration Centre and at India's national tribunal.

(Reporting by Manvi Pant in Bengaluru; Editing by Sonia Cheema)

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Repeats late Tuesday item with no change to text

By Aditya Kalra

NEW DELHI, Aug 20 (Reuters) - India's antitrust body has reached an initial assessment that the $8.5 billion India merger of Reliance and Walt Disney media assets harms competition due to their power over cricket broadcast rights, four sources told Reuters on Tuesday.

It is the biggest setback so far to the planned Disney-Reliance merger which aims to create India's biggest entertainment player which will compete with Sony 6758.T, Zee Entertainment ZEE.NS, Netflix NFLX.O and Amazon AMZN.O with a combined 120 TV channels and two streaming services.

The Competition Commission of India (CCI) has privately warned Disney DIS.N and Reliance RELI.NS through a notice in which it has shared its concerns about their grip over rights to broadcast the favourite sport of the world's most populous country, one of the sources said.

The CCI has asked the companies to explain within 30 days why an investigation should not be ordered.

"Cricket is the biggest pain point for the CCI," said another source.

The merged company, which would be majority owned by Asia's richest man Mukesh Ambani's Reliance RELI.NS, would have lucrative rights worth billions of dollars for the broadcast of cricket on TV and streaming platforms, raising fears over pricing power and its grip over advertisers.

Reliance, Disney and the CCI did not respond to requests for comment. All sources declined to be named as the CCI process is confidential.

Antitrust experts had warned the merger, announced in February, could face intense scrutiny, especially on the sporting rights issue.

The CCI earlier privately asked Reliance and Disney around 100 questions related to the merger. The companies have told the watchdog they are willing to sell fewer than 10 television channels to assuage concerns about market power and win an early approval, sources told Reuters.

But they had refused to relent on cricket, telling the CCI that broadcast and streaming rights will expire in 2027 and 2028 and cannot be sold right now, and that any such move would require the cricket board's approval, which could delay the process.

The Board of Control for Cricket in India has Jay Shah, the son of Prime Minister Narendra Modi's home minister Amit Shah, in one of its top positions as secretary.

"GETTING COMPLICATED"

Reliance-Disney will own digital and TV cricket rights for top leagues, including for the world's most valuable cricket tournament, the Indian Premier League.

The CCI notice may delay the approval process but the companies can still address the concerns by offering more concessions, the first source said.

"This is a precursor of things getting complicated ... The notice means that initially the CCI thinks the merger harms competition and whatever concessions offered are not enough," added the person.

A second source said CCI has given the companies 30 days to respond and explain their position, and the concerns currently revolve around how advertisers could face pricing challenges if the entities are merged.

"The CCI is concerned the entity can increase rates for advertisers during live events," said the person.

Jefferies has said the Disney-Reliance entity will have a 40% share of the advertising market in TV and streaming segments.

Cricket has a fanatical following in India, the world's most populous country with an estimated 1.4 billion people, and matches are sought after by advertisers.

Media agency GroupM estimates spending on sports industry related sponsorship, endorsement and media totalled to near $2 billion in 2023. Cricket accounted for 87% of those spends.

The former head of mergers at the CCI, K.K. Sharma, has said the merger could lead to "almost an absolute control over cricket."

Zee and Sony planned to create a $10 billion TV behemoth in India and in 2022 and got a similar warning notice. They offered some concessions by selling three TV channels which helped them win a CCI approval, but the merger eventually collapsed.

(Reporting by Aditya Kalra; Additional reoprting by Munsif Vengattil; Editing by Conor Humphries and Louise Heavens)

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