Zee Entertainment approves merger with Sony Pictures Networks
board of directors of Zee Entertainment Enterprises Limited, Bangla
Entertainment & Pvt Ltd (BEPL), and Sony Pictures Networks India (SPNI) Private
Limited discussed and approved the Scheme of Arrangement between Zee
Entertainment Enterprises Limited, BEPL, and Sony Pictures Networks India
Private Limited at its meeting on December 21, 2021, the company announced on
Zee's present holding company, would own 3.99 percent of the combined firm,
with Sony Pictures Networks India Pvt. owning 50.86 percent. The remaining
45.15 percent will be distributed to public shareholders as part of the formal
agreement. Punit Goenka, the merged company's Managing Director and CEO, will
stay on. As part of the acquisition, Sony Pictures Networks India (SPNI) would
get control of prominent channels such as Sony MAX and Zee TV, as well as
streaming services ZEE5 and SonyLIV.
shareholder, and third-party approvals, as well as other standard closing
conditions, are all required for the transaction to close. In India, the new
combined entity will be listed on the stock exchange.
September, Zee stated that its board of directors had unanimously approved the
merger with Sony Pictures Networks India (SPNI).
to the firms, SPNI would have a cash balance of $1.5 billion when the
acquisition closes, due to a financial infusion from current SPNI shareholders
and Zee promoters.
deal would also likely relieve the pressure Zee was under from senior
shareholders in September, who demanded a management revamp, including the
resignation of CEO Punit Goenka from the board of directors, due to corporate
recent years, streaming services such as Netflix Inc, Amazon.com Inc's Prime
Video, and Walt Disney Co's Hotstar have increased competition in India, which
still depends largely on direct-to-home television entertainment.