Zee Entertainment Enterprises Limited will merge with entertainment giant Sony Pictures Networks India (SPNI). Zee Entertainment said on Wednesday that the board has given its principle approval.
As soon as it was announced that Zee Entertainment was merging with Sony, Zee Entertainment shares were up more than 20 per cent or nearly Rs 55.65 to Rs 311.35. In addition to digital broadcasting, Zee has been recognized by the Zee TV brand in Media. Amid the debt pressure, major investors put pressure on Zee's board to change. In addition, Chief Executive Officer Puneet Goenka was asked to be removed from the board. But now Zee and SPNI have entered into an agreement to merge the network, digital assets management operations and program collections.After the merger, Sony will invest $1.57 billion and will be the majority shareholder with 52.93% controlling stake. The shareholders of Zee Entertainment Enterprises Limited, meanwhile, will hold 47.07 per cent stake. pic.twitter.com/n0vIaGlioH
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As per the agreement, Zee's investments remain at 47.07% and the remaining shares are owned by Sony India Network Investors. Sony will invest about $ 1.57 billion, or $ 11,571 crore. This means a 52.93 per cent shareholding.
The country's largest entertainment network Together with Zee Entertainment and Sony India Network, the two companies will create the largest entertainment network in India, with 26 per cent viewership, 18 per cent viewership with Sony and 8 per cent viewership with Sony.
The two-merger merger will have a 75-channel network. SPNI Operates 26 channels and includes two new channels in the sports genre. Zee Entertainment adds 49 channels.
Zee Network is present in 173 countries In addition, JEE has reached more than 1.3 billion people in more than 173 countries and around the world. Zee reaches over 600 million people in India every week. But Sony reaches 700 million viewers in India and is available in 167 countries.
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