Zee and Sony to make new entity soon, Merger on the cards

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In its board meeting, The directors of Zee entertainment unanimously gave their nod to the merger between Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Limited (ZEEL). It is expected that the union will benefit stakeholders and shareholders. And it will also enhance the overall content creation approach and will drive digital platform growth.

As a part of this development, SPNI’s shareholders will hold a majority stake in the merged entity. They will also infuse growth capital into SPNI for use in pursuing additional growth opportunities. The new entity will be a publicly listed company in India and Mr. Punit Goenka will play the role of Managing Director and CEO of the merged entity.

ZEEL continues to chart a strong growth trajectory and the Board firmly believes that this merger will further benefit ZEEL.

Mr.R. Gopalan, Chairman of ZEE entertainment

Gopalan continues, “The value of the merged entity and the immense synergies drawn between both the conglomerates will not only boost business growth but will also enable shareholders to benefit from its future successes. As per legal and regulatory guidelines, at the required stage, the proposal will be presented to the esteemed shareholders of ZEEL for their approval.”

Two entertainment biggies have already entered into a non-binding term sheet to combine both companies’ linear networks, digital assets, production operations, and program libraries. As per the term sheet, the companies will conduct mutual diligence and finalize definitive agreement(s) in an exclusive period of 90 days.

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