Zee Sony Merger Approved: CEO Announced - Viral Bake
Business

Zee Sony Merger Approved: CEO Announced

Sony Pictures Networks India and Zee Entertainment Enterprises Limited in a joint meeting approved the merger between two companies on December 22.

Stakes Involved

In the merger Sony Pictures Networks India will have a majority stake of 50.86 percent. The promoters of Zee Entertainment will get to hold 3.99%, Zee shareholders will hold 45.15% stake in the newly merged enterprise.

Newly formed company is expecting to become India’s largest entertainment network. The merger will provide competitive benefits.

Benefits Taken by ZEE-SONY

The merger deal includes merging of television channels, film assets and streaming platforms. Sony MAX, Zee TV, ZEE5 and SonyLIV will be part of merger.

Mr Punit Goenka will hold the position of Managing Director and CEO in new company. However, Sony Group will nominate majority of board of directors of the merged entity. Managing Director of Sony Pictures Networks India, N.P. Singh will be in list of board members.

Under the signed agreements, Sony will keep cash balance of $ 1.5 Billion to sharpen up the content creation process across different platforms. The goal of the new merger is to strengthen its footprint in digital ecosystem. The merger will also invest on bidding for media rights of different sports.

Deal Details

Very soon newly formed company will be listed in the market as per information given by ZEE Entertainment .

The merger was first announced on September 22. Both companies agreed on a diligence period of 90 days. This was served to ensure that operations of the merger goes smoothly and differences are resolved before merger is approved.

ZEE Invesco Issue

Invesco, largest shareholder in ZEE Entertainment raised concern regarding stake of promoters and suggested an increase to 20%.

The deal also gave a relief to ZEE Entertainment. Lately, top shareholders were creating pressure for management reshuffling including removal of Punit Goenka from the board. Fear of corporate governance was main reason of concern.

Siddhant Baranwal

Siddhant is a Content Creator. He has been doing this for past three years and have managed to gain good attention of audiences for his work. He is an active reader and has huge respect for art and theatre.

Related Articles

Back to top button