The merger deal between Zee Entertainment Enterprises Limited (ZEEL) and Sony Pictures Network India (SPNI) received the approval of the National Company Law Tribunal (NCLT). The decision announced on Thursday, August 10, comes after the NCLT dismissed all objections raised against the merger, paving the way for the creation of the country's largest entertainment conglomerate, according to a report by ZeeBiz.
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Zee - Sony Merger
Following the NCLT's green light, ZEEL's stock experienced a surge of 15 percent, reaching Rs 278.40 on the Bombay Stock Exchange (BSE). The report quoted sources, stating that the detailed copy of the order will be uploaded on Friday.
The merger between Zee and Sony is set to result in the formation of the largest entertainment company in the country. The merged entity is expected to generate a standalone revenue of approximately USD 2 billion.
Focus on TV and Digital
The report said Zee, as a company, plans to expand its digital presence and invest in linear TV to tap into the large TV and digital market in India, which is expected to grow in the coming years.
The key aspect of the merger involves the integration of TV businesses, digital assets, production operations, and program libraries from both ZEEL and Sony. To formalize this, an exclusive non-binding agreement has been inked between ZEEL and SPNI, according to the report.
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The ZEEL promoter family currently holds 4 percent of the shares and has the opportunity to increase their stake to 20 percent. Meanwhile, the Sony Group will have the authority to choose most of the board's directors.
With the merger poised to reshape the entertainment landscape, industry dynamics are poised for a paradigm shift, promising various possibilities for growth, innovation, and enhanced viewer experiences.
