Zee Entertainment to merge with Sony Pictures Networks India
Published On: Wednesday, September 22, 2021 | By: Team KnowMyStock
Zee Entertainment Enterprises (ZEEL) zoomed 39 percent to Rs 355.35 on the National Stock Exchange (NSE) in the intra-day trade on Wednesday after the company announced a merger with Sony Pictures India.ZEEL said on Wednesday that its board of directors has unanimously provided in-principle approval for the merger with Sony Pictures Networks India (SPNI). Zee, which has a presence in television broadcasting and digital media with brands such as Zee TV, has been under pressure from top investors for a management reshuffle, including the exit of Chief Executive, Punit Goenka, from the board. Sony Pictures Networks India (SPNI) and ZEEL have signed an exclusive, non-binding term sheet to combine the companies' linear networks, digital assets, production operations, and program libraries, the companies said on Wednesday.SPNI will also infuse $1.575 billion in the entity, ZEEL said in a filing.
"If the deal goes through, we expect the quality of supervision on the management to be greater and it should likely reduce the risks of related party transactions and governance failures," said Hetal Dalal, president, and chief operating officer, IiAS.
Both SPNI and ZEEL face stiff competition for Indian viewership from streaming platforms like Netflix (NFLX.O), Amazon's (AMZN.O) Prime Video and Disney's (DIS.N) Hotstar.
Tags: ZEEL Sonynetwork deal
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