On Wednesday, Zee Entertainment Enterprises Limited (ZEEL) announced a merger with Sony Pictures Networks India (SPNI). The details of the merger involves Sony investing $1.57 billion while getting controlling stake of 52.93%, meanwhile, ZEEL will control it’s remaining share of 47.07%.
The merger after being approved by Zee Entertainment Limited Board became public. The board also said that which Puneet Goenka will remain the Managing Director and CEO of the merged entity.
The ZEEL board while addressing to media informed that they have perfectly seen through the deal and not only evaluated financial parameters, “but also the strategic value which the partner brings to the table”.
The board continued to inform that entertainment companies have entered into non-binding agreement and combine their linear networks, digital assets, production operations and program libraries.
The merged company will be a listed company in India also with ZEEL board.
Zee said in an exchange filing, The term sheet gives a period of 90 days, during which both firms will conduct mutual diligence and finalize definitive agreements to realize a future way to work together as a merged entity.
The merger proposal will be presented to shareholders for their final approval.
ZEE, has been under scrutiny of investors for a while now, demanding a reshuffle at managerial level. With the brand being well known in Indian television space with Zee TV and Zee news, it has to be seen how the new shift will bring the needed audience support.