Today’s breaking news that is grabbing everyone’s attention for a few days is Sony and Zee’s merge. The deal is finally coming to a close, Sony Pictures Networks India Private Limited (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) announced that they have signed definitive agreements to merge today. The deal will integrate the digital assets, linear networks, production operations and program libraries.
The agreements end with an exclusive negotiation period during which ZEEL and SPNI where both the parties must have mutual due diligence. After the merge, the combined company will be then listed publicly in India.
Under the terms of definitive agreements, SPNI has a cash balance of $1.5 Bn at closing. It also includes the current shareholders of SPNI and promoters of ZEEL that will help the combined company to offer sharper content creation across varied platforms and strengthen their presence exponentially in the evolving digital space. SPNI is an indirect subsidiary of SPE (Sony Pictures Entertainment Inc.)
Punit Goenka as MD & CEO
Punit Goenka will lead the merger company as MD and CEO. The board of directors will include people nominated by the Sony Group and current SPNI MD and CEO N.P. Singh. After the merge, Singh will have a broader executive position at SPE as Chairman.
The merge between the 2 oldest entertainment channels is happening to achieve business synergies and strengthen their scripts, non-fiction, sports and entertainment. The merge is expected to meet the growing customer demands by offering them premium content across different platforms. The rich blend of expertise in content creation, deep consumer insights, success across entertainment genres of both the channels together will improve the shareholder value and take the channels to new heights.
Under the guidance of Sony Group, the merger will be able to compete better with the world’s largest streaming platforms.
CEO of SPNI Mr N.P. Singh said that the merger will redefine the ‘contours of the media and entertainment industry’. CEO of ZEEL Mr Punit Goenka said that the merged company will create a comprehensive entertainment business and it will help the company to serve their viewers a broad variety of content across platforms.
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