As reported by Deadline, Sony Pictures Networks India and Zee Entertainment Enterprises are finalizing a merger to create a combined entity in India. Both parties have entered into a non-binding and exclusive term sheet to merge both linear networks, production operations, digital assets, and program libraries.
Sony Pictures Networks India will hold a majority stake and ZEEL Managing Director and CEO Punit Goenka will lead the merged entity. The merger will allow both parties to transition from traditional broadcast TV into a digital future. The merged company will be a publicly listed company in India. Sony Pictures Networks India will invest a growth capital of $1.6 billion at closing that will give Sony shareholders 52.93% stake and ZEEL shareholders will get 47.07% of the merged entity. The growth capital is expected to improve the merged company’s digital platforms across content and technology as well as help bid for major sports rights.
The deal will now need 90 days for mutual diligence and to negotiate agreements. The merger deal between Sony Pictures Networks India and Zee Entertainment Enterprises will require regulatory third-party approvals.
It’s unclear how the companies have planned their digital future. Zee and Sony have already entered the OTT market with Zee5 and SonyLIV respectively. It remains to be seen whether these services will operate separately or be combined into one entity. The merger is expected to bring media across cable TV, digital streaming, music and video library, and production operations under one banner.
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