Zee Entertainment approves merger with Sony Pictures Network India

The merger of the two biggest entertainment houses is expected to bring synergies to enhance the Combined Company’s Content Creation Capabilities and Drive Digital Platform Growth.

Zee Entertainment Enterprises Ltd (ZEEL), India’s largest television network and Sony Pictures Networks India Private Limited (SPNI), an indirect subsidiary of Sony Pictures Entertainment Inc (SPE) announced that they have signed definitive agreements to merge ZEEL with and into SPNI and combine their linear networks, digital assets, production operations and program libraries. After closing, the new combined company will be publicly listed in India. 

Sony Pictures Entertainment Inc (SPE) will indirectly hold a majority of 50.86 per cent of the combined company, the promoters (founders) of ZEEL will hold 3.99 per cent, and the other ZEEL shareholders will hold a 45.15 per cent stake. The definitive agreements also limit the promoters of ZEEL to restrict their holding in the combined company to 20 per cent of its outstanding shares. 

The merger of the two biggest entertainment houses is expected to bring synergies to enhance the Combined Company’s Content Creation Capabilities and Drive Digital Platform Growth. The combined entity will own more than 70 TV Channels, two video streaming platforms, two film studios and a wide array of content libraries, making it the largest television and entertainment network in India. 

Commenting on this development, Punit Goenka, MD and CEO, ZEE Entertainment Enterprises Ltd. said, “It is a significant milestone for all of us, as two leading media and entertainment companies join hands to drive the next era of entertainment filled with immense opportunities. 

Punit Goenka will lead the combined company as its Managing Director and CEO. The majority of the board of directors of the combined company will be nominated by the Sony Group and will include the current SPNI Managing Director and CEO, N P Singh. 

The shares of Zee Entertainment are currently trading at Rs 339.20 with a loss of 2.47 per cent at 11.10 am after rallying 5.26 per cent in yesterday’s trading session.