Zee founder Subhash Chandra’s son Punit Goenka will head the new company
Agencies
NEW DELHI: Zee has become a foreign company, with its merger with Sony.
Sony’s Indian arm – Sony Pictures Networks India (SPNI) – announced on Tuesday that Zee Entertainment Enterrpise (ZEEL) is merging with it.
The merged company will become the biggest TV player in the Indian market, overtaking Disney’s Star India.
The new entry will have 75 TV channels, two film studios, two streaming services (Zee5 and Sony LIV), and a digital content studio.
Since Zee has a huge presence in small-town India and Sony dominates the highly lucrative sports and kids segments, the complementary merger is a win-win for both the companies.
With the merger, Sony – which is a $82 billion global behemoth – will now have a pan-India presence.
Sony will have 51 percent stake in the merged company, which will be headed by current Zee CEO and president Punit Goenka who is the son of Zee founder Subhash Chandra. The
In a press statement, Goenka said, “The combined company will create a comprehensive entertainment business, enabling us to serve our consumers with wider content choices across platforms.”
He said, “It is a significant milestone for all of us, as two leading media and entertainment companies join hands to drive the next era of entertainment filled with immense opportunities.”
Zee promoters will have 3.99 percent stake and current Zee shareholders 45.15 percent stake in the new company.
As part of the merger deal, Zee promoters will get Rs 1,101 crore non-compete fee with which they will buy 30.67 million shares in the merged company to keep their stake at 3.99 percent (as in Zee Entertainment).
India has over 800 channels, catering to over 900 million viewers.
The country’s entertainment market alone is set to grow to $29 billion by 2023.
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