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Sony Pictures Networks India Private Limited (SPNI) and Zee Entertainment Enterprises Ltd. (ZEEL) on Wednesday announced that they have signed definitive agreements to merge ZEEL with and into SPNI and combine their linear networks, digital assets, production operations and program libraries.
Under the agreement, SPNI will have a cash balance of $1.5 billion, including through infusion by the current shareholders of SPNI and the promoters of ZEEL, according to a joint press release issued by Zee – Sony.
The deal aims to enable the combined company to drive sharper content creation across platforms, strengthen its footprint in the rapidly evolving digital ecosystem, bid for media rights in the fast-growing sports landscape and pursue other growth opportunities.
The new combined company will be publicly listed in India. However, the closing of the transaction is subject to certain customary closing conditions, including regulatory, shareholder, and third-party approvals.
As part of the deal, the promoters of ZEEL have agreed to limit the equity that they may own in the combined company to 20 per cent of its outstanding shares. In addition, Punit Goenka will lead the combined company as its Managing Director and CEO
