Zee Entertainment has reached a merger agreement with Sony Pictures Networks India, a subsidiary of Sony Pictures Entertainment, to compete comfortably against Netflix, Amazon and Disney.
Sony Pictures Networks India and Zee Entertainment recently announced that they have signed definitive agreements to merge the Indian media giant with SPNI and merge their networks, digital assets, production operations and software libraries. The agreements follow the conclusion of an exclusive negotiation period during which the two companies have conducted mutual due diligence.
Under the terms of the agreements, SPNI will have a cash balance of $1.5 billion at the close of the deal, thanks in part to the contribution of current SPNI shareholders and the founders of Zee Entertainment, to enable the combined company to create more advanced content across all platforms, strengthen its presence in a rapidly evolving digital ecosystem,
“This is an important step in our efforts to bring together the strongest management teams, content creators and film libraries in the media industry to create extraordinary entertainment and value for Indian consumers,” said Ravi Ahuja, President of Sony Pictures Entertainment Global Television. Studios and Sony Pictures Entertainment Corporate Development.
“I want to thank Puneet Goenka and his team at Zee Entertainment and the small army of people from Sony Pictures Entertainment and Sony Pictures Networks India who have worked so hard to bring us to this point. I especially want to thank NP Singh, who introduced us to the idea of exploring this merger over a year ago. He has done an amazing job in making Sony Pictures Networks India what it is today and we look forward to continuing our work with him in his new post-closure position.”
ZEE Entertainment CEO Puneet Goenka added, “This is a significant milestone for all of us as two leading media and entertainment companies come together to usher in a new era of entertainment full of possibilities. The combined company will create a comprehensive entertainment business that will allow us to provide our consumers with a greater choice of content across all platforms.
I am immensely grateful to the teams of ZEE Entertainment, Sony Pictures Entertainment and Sony Pictures Networks India for their efforts which quickly brought us to this point on the schedule. This merger represents a significant opportunity to take the business to the next level and generate significant growth on the global stage. I look forward to working under the leadership of the esteemed board members of the combined company to unlock the potential of this merger and wish NP Singh all the best in his new role at Sony Pictures Entertainment. His contributions to the media and entertainment industry have been invaluable.
I am confident that our collective wisdom, rich experience and knowledge will lead to the creation of a business that will be more valuable and interesting for our shareholders and employees, and more attractive for our customers and partners.”
Mega TV network for Sony Pictures Entertainment.
The combination of Zee Entertainment and Sony Pictures Networks India is expected to provide commercial synergies and given their relative strength in screenwriting, factual and sports programming, their respective distribution capabilities and their iconic entertainment brands, the combined company should be well positioned to cater to the growing consumer demand for premium content for various entertainment outlets and platforms. The perfect combination of rich content creation experience, in-depth consumer knowledge and success across all genres of entertainment should enable the new company to increase shareholder value.