ZEEL, Sony Pictures Network inks a merger deal, Sony to acquire the majority

The Indian media conglomerate Zee Entertainment Enterprises Limited (ZEEL) and Sony Pictures Network have decided to enter into a merger deal. 

Punit Goenka, managing director, and chief executive officer of Zee Entertainment Enterprises signed a non-binding term sheet for the merger of Zee and Sony. 

The two organisations have been brought into the non-binding term to combine both companies’ linear networks, production operations, digital assets and program libraries. The term sheet allows an exclusive period of 90 days during which SPNI and ZEEL will conclude definitive agreements and conduct mutual diligence. The merged organisation will be a publicly listed company in India.

Sony Pictures Network will be infusing $1.575 billion after the merger and Punit Goenka will be the MD of the newly formed organization. Goenka will continue to be the MD and CEO of the newly formed entity for over five years. 

Following the merger, Sony Pictures Network will hold a 52.93 per cent stake in the entity whereas, Zee Shareholders will take the remaining 47.07 per cent stake. 

R. Gopalan, Chairman, ZEE Entertainment Enterprises Ltd., said, “The Board of Directors at ZEEL have conducted a strategic review of the merger proposal between SPNI and ZEEL. As a Board that encompasses a blend of highly accomplished professionals having rich expertise across varied sectors, we always keep in mind the best interests of all the shareholders and ZEEL. We have unanimously provided an in-principal approval to the proposal and have advised the management to initiate the due diligence process. ZEEL continues to chart a strong growth trajectory and the Board firmly believes that this merger will further benefit ZEEL. The value of the merged entity and the immense synergies drawn between both the conglomerates will not only boost business growth but will also enable shareholders to benefit from its future successes. As per legal and regulatory guidelines, at the required stage, the proposal will be presented to the esteemed shareholders of ZEEL for their approval.” 

The deal was unanimously approved by the board of directors of ZEEL, considering the financial capabilities and the value that SPN brings to the table.