Sony Group Corp’s India unit and Zee Entertainment Enterprises Limited (ZEEL) are anticipated to conclude their pending merger deal as early as November, according to sources familiar with the matter. The merger, approved by the National Company Law Tribunal (NCLT) on August 10, faced objections from creditors, including Axis Finance and IDBI, who are challenging the NCLT’s decision before the National Company Law Appellate Tribunal (NCLAT). Despite these challenges, the merger is expected to be effective by November.
The merger, initially projected for completion by the end of September, encountered delays due to various clauses, as acknowledged by Sony Group Corp last month. The Boston Consulting Group (BCG), responsible for the integration process, is reportedly working diligently to fulfil the merger-related formalities.
Upon completion, the merger will bring together over 70 TV channels, two video streaming services (Zee5 and SonyLiv), and two film studios (Zee Studios and Sony Pictures Films India). The integration process is being overseen by BCG, and the aim is to finalize the merger by early November, with teams from both companies actively working towards this goal.
The NCLAT recently refused to issue a notice in response to appeals filed by Axis Finance and IDBI Bank challenging the NCLT’s order approving the Zee-Sony merger. The case has been adjourned to October 31, allowing ZEEL to file a response if needed.
“Regulatory approvals like CCI, NCLT may take over a year. CCI may not provide clearance or ask to shutdown channels, as Sony/Disney will have a much larger TV ad market share of 45 per cent (Zee/Sony TV ad market share is 25 per cent),” Karan Taurani, Senior Vice President of Research at Elara Capital said on October 16. Despite these complexities, the Zee-Sony merger is expected to mark a significant development in India’s media industry, creating a formidable entity in the entertainment landscape.
