Sony to have majority control, Zee’s Punit Goenka to lead the new entity
Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Ltd. (ZEEL) on Wednesday said they had entered into an exclusive, non-binding Term Sheet to combine both companies’ linear networks, digital assets, production operations and programme libraries.
The non-binding Term Sheet provides an exclusive negotiation period of 90 days during which ZEEL and SPNI will conduct mutual diligence and negotiate definitive, binding agreements.
The combined company would be a publicly listed company in India. They said the combined entity would be better positioned to lead the consumer transition from traditional pay TV into the digital future.
“The merger of ZEEL and SPNI would bring together two leading Indian media network businesses, benefiting consumers throughout India across content genres, from film to sports. The combined company is expected to benefit all stakeholders given strong synergies between ZEEL and SPNI,” a statement from Sony Pictures said.
Under the terms of the non-binding Term Sheet, Sony Pictures Entertainment, the parent company of SPNI, would invest growth capital so that SPNI has a cash balance of approximately $1.575 billion at closing for use to enhance the combined company’s digital platforms across technology and content, ability to bid for broadcasting rights in the fast-growing sports landscape and pursue other growth opportunities.
Sony Pictures Entertainment would hold a majority stake in the combined company. It has been decided that current ZEEL Managing Director & CEO Punit Goenka will lead the combined company.
The combined company’s board of directors would include directors nominated by Sony Group and result in Sony Group having the right to nominate the majority of the board members.
The final transaction would be subject to completion of customary due diligence, negotiation, and execution of definitive binding agreements, and required corporate, regulatory and third-party approvals, including ZEEL shareholder vote.
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