ZeeSony Merger Approved by the Board of Directors; Sony will hold 50.86% of the capital of the consolidated unit

ZeeSony Merger Approved by the Board of Directors; Sony to own a 50.86% stake in tSony has accepted the appointment of Punit Goenka as chief executive officer and chief executive officer of the merged entity, which is an integral part of the deal.
he merged the entity
On December 22, the board of directors of Zee Entertainment Enterprises Ltd (ZEEL) approved the merger with Sony Pictures Networks India (SPNI).
Sony will own 50.86% of the capital of the merged entity, the board said.
ZEEL supporters will hold 3.99% and other ZEEL shareholders will hold 45.15% of the capital of the consolidated legal entity.
Explaining the reasons for the merger, the board of directors said: “The company is specifically engaged in the development of television content, broadcasting regional and international entertainment satellite channels, and movies. , music and digital activities. The company is one of the largest entertainment networks. ”
Under the definitive agreements entered into to merge ZEEL with and into SPNI, Sony will have a cash balance of $1.5 billion to enable the combined company to create more accurate content across all platforms, to cement their footprints in the rapidly growing digital ecosystem, bid for media rights in the burgeoning sports scene and pursue other growth opportunities. In announcing the merger, Zee said that SPNI had agreed to appoint Punit Goenka as chief executive officer and CEO of the merged entity, which is an integral part of the deal. The majority of the combined company’s board of directors will be appointed by Sony Corporation and will include SPNI’s current CEO and CEO, N.P. Singh.
Singh will assume a broader leadership role at SPE (Sony Pictures Entertainment) as President of Sony Pictures India (a division of SPE) reporting to Ravi Ahuja, SPE President of Global Television Studios and SPE Corporate Development.
The merger between the two entities was announced on September 22. Zee and Sony said it would take the companies 90 days to conduct due diligence. The merger is significant because the merger of Zee and Sony will bring great synergy between the two companies, which will end on December 21,
Analysts say the merger is significant. will grow the activity and the sector exponentially.
Experts also point out that the merger will create the largest entertainment network in India with an audience share of 26%. In addition, ZeeSony Handset will take a 51% stake from the first quarter data of fiscal year 22 in the General Hindi Entertainment Channel (GEC) segment, which is television’s most popular category for ‘auditory’ performance. In Hindi movies, another high-performing genre, the ZeeSony entity will have a 63% audience rating.
This is why analysts say the merger is a big bright spot and the merged entity is a strong competitor to displace the market leaders Star and Disney in the medium and long term. long-term.
As Zee and Sony signed definitive merger agreements, Zee’s largest shareholder, Invesco, which together with OFI Global owns nearly 18 percent of the media company’s capital, expressed concern about the potential for a stake increase. promotion team share to 20% in ZeeSony Merger Project. entity.
As part of the final agreement signed on December 22, the ZEEL promoters have committed to limit the amount of capital they can hold in the combined company to 20% of outstanding shares. its act. This construction does not confer on ZEEL promoters any prerogative or otherwise to redeem equity of the incorporated company from the Sony corporation, the incorporated company or any other party. , according to the terms of the agreement mentioned. All shares purchased by ZEEL promoters must comply with all applicable laws, including pricing guidelines, the agreement added.